Brazil's 5,500 Bankruptcies in 2015 Signal Deeper Credit Crisis
- Companies' overseas borrowing costs soar to highest since 2003
- Business confidence has fallen to the lowest level since 1999
Providencia slum stands in this photo taken with a tilt-shift lens in Rio de Janeiro, Brazil, on Wednesday, May 20, 2015. Even with the real posting the biggest drop among major currencies this year, Brazil's current account gap has hovered near a record as a percentage of gross domestic product.
Photographer: Dado Galdieri/BloombergThis article is for subscribers only.
In his two decades covering Brazil, Fitch Ratings’s Joe Bormann says he’s never seen the nation’s companies in such a dire state.
To appreciate just how bad things are, consider this: Brazilian courts granted more than 5,500 bankruptcy filings in 2015, the most since 2008, according to Sao Paulo-based credit rater Serasa Experian.