The finances of Brazilian companies are deteriorating quickly, yet their bonds are handing investors some of the most impressive returns in emerging markets.
The incongruity underscores how the euphoria unleashed by the push to impeach President Dilma Rousseff has masked the faltering creditworthiness of the nation’s businesses. S&P Global Ratings now has a negative outlook on the ratings of more than 60 percent of Brazil’s corporate borrowers, the highest rate in a decade.
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