-Fitch Ratings: Most Brazilian Corps Can Weather Short-Term FX Volatility
Short-term FX volatility should have a limited effect on the cash flow and leverage of most Brazilian companies, according to Fitch Ratings.
However, highly speculative grade issuers with limited geographic diversification, meaningful US dollar debt, or low liquidity may be at risk due to already elevated leverage and/or refinancing risk.
The Brazilian real has recovered somewhat in recent weeks after depreciating about 20% YTD through September. The market and the real have so far r...