Petrobras Among Brazil Borrowers Most at Risk as Real Sinks
- Fitch also cites Eletrobras, Gol and General Shopping
- Companies have biggest foreign-exchange mismatch in Brazil
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Petroleo Brasileiro SA, the state-controlled oil producer with $55 billion of overseas bonds, is among the Brazilian companies most at risk of seeing leverage ratios swell as the real posts the world’s biggest currency losses.
For Petrobras, the electric utility known as Eletrobras, airline Gol Linhas Aereas Inteligentes SA and mall operator General Shopping Brasil SA, every 10 percent depreciation in the real boosts the companies’ debt-to-earnings ratio by a factor of one, according to Fitch Ratings.