trending Market Intelligence /marketintelligence/en/news-insights/trending/nixkqjq9i8aaxsd90525ag2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In this list

Fitch: Lending in Brazil to remain timid in 2017 despite improved growth outlook

OTT Winners, Losers In The Age Of COVID-19

After Growing In 2019, Latam FTTP Market Might Slowdown In 2020 Due To COVID-19

Another Outcome Of COVID-19: Olympics Postponed

COVID-19 Crisis: Legacy TV Universe Strategic Analysis

Fitch: Lending in Brazil to remain timid in 2017 despite improved growth outlook

Despite improvingBrazil's growth forecast for 2017, Fitch Ratings said it expects bank lending inthe country to remain conservative.

Banks have reducedthe granting of new loans in both 2015 and the first half of 2016 by 3.2% and 6.8%,respectively, driven by recession, slumping consumer spending, weaker confidenceand falling investment, Fitch said.

"We expectbanks to continue this cautious approach to credit demand until they see clear signsthat economic growth can be sustained," the rating agency stated.

The agency anticipatesnew credit demand from corporates with investments showing their first quarterlyincrease since the third quarter of 2013, but noted that banks will return timidlyto corporate lending given companies' weak finances and a high number of bankruptcies."Cash flow generation in the corporate sector is weak, making it difficultfor companies to support the high cost of borrowing in Brazil," Fitch added. 

Fitch said itraised Brazil's growth forecast to 1.2% in 2017 and 2.2% in 2018, respectively,from 0.7% and 2%.