Corporate delinquency sees biggest increase in 20 months in May - Serasa

Tuesday, June 28, 2011

Corporate delinquency in Brazil recorded a 23.6% increase in May over the same month in 2010, the biggest year-on-year expansion since June 2009, credit information firm Serasa Experian said in a report.

Corporate delinquency also expanded on a monthly comparison, up 16.2% in May from April, while it rose 7.1% in January-May over the year-ago period.

According to Serasa economists, the big increase in corporate delinquency is explained by interest rate hikes and an economic deceleration as the government seeks to contain inflationary pressures.

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The firm also noted that increased consumer delinquency is impacting companies' cash flow.