Take a glance at the stock market, and all appears well in the Brazilian economy. The Ibovespa has soared more than any other major index in the Americas over the past year — almost 60% in dollar terms at last count.
But inside C-suites and corner shops and cafes all across the country, the picture is far bleaker. With borrowing costs hovering near a two-decade peak and credit growing increasingly scarce, a historically high number of companies are fighting to keep their doors open.
The latest high-profile example of a company dealing with mounting financial stress came just last week, when hospital operator Kora Saude Participacoes filed for an out-of-court debt restructuring. It’s the same fate that a pair of corporate heavyweights — biofuels producer Raizen and supermarket chain Companhia Brasileira de Distribuicao — had suffered weeks earlier.
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