Corporate defaults in Brazil see sharpest fall in six years

16:25, December 01, 2010      

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Brazil's corporate default rate fell 6.2 percent in the first 10 months of 2010 compared to the same period last year, credit consulting company Serasa Experian said on Tuesday.

The decrease was the sharpest registered in the period since 2004. In October, the default rate was down 3.4 percent compared to September, the sharpest fall in a decade. Compared to the same period in 2009, corporate defaults fell 3.8 percent, the largest fall in a year on year comparison since 2004.

The decrease in the default rate reflects the good conditions of the Brazilian economy and a good financial outlook in the country. The company expects defaults to fall in 2010 compared to last year, when the corporate default rate was up 18.8 percent from 2008, due to the effects of the international financial crisis.

The default rate among small companies fell 3.1 percent from September and 3.7 percent from October 2009, Serasa Experian said. Among medium-sized companies, defaults were down 3.4 percent from September and 9.3 percent year on year, and among large companies, the default rate fell 13.6 percent from September and 3.2 percent from the same period last year.



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