The risk rating agency Fitch Ratings said on Monday that risk aversion in the debt market of Brazil after the bankruptcy of the American chain should be temporary.
For Fitch, Brazilian companies face “manageable” refinancing risks, with debt maturing at US$65 billion over the next two years, according to a report.
Fitch mentioned that several paper issues were suspended after the crisis in the retail chain arose and indicated that it has detected signs of a possible revaluation in financing costs.
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However, “The lower demand for private debt is likely to be temporary and a prolonged weakness in available liquidity will not feed into the ratings,” said Renato Donatti, director of fitchin the statement.
Still, he added that if this recent behavior persists, “Refinancing risks for Brazilian companies will increase significantly, with negative credit implications for several notes, particularly those with the highest refinancing needs in 2023-2024.”
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Source: Gestion
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