...Leading FDI Destination: Chilean companies invested $100 billion abroad since 1990, according to the most recent census by Chile's Direcci=n General de Relaciones Economicas Internacionales. Brazil was the most important destination for these investments, accounting for $26 billion. Many of the investments are relatively recent, as Chilean corporates spent close to $9 billion in that country during 2013. Difficult 2015 Conditions: Fitch Ratings projects GDP will contract 1.0% in Brazil during 2015, after almost no growth in 2014. Corporates are facing tough market conditions due to a combination of weak demand, persistent high inflation, declining commodity prices, rising interest rates and foreign exchange volatility. These challenges will likely lead to deterioration in companies' operating performance and result in higher leverage. Credit lines are tight and very selective, especially for weaker credits, exacerbating risks. Weak Consumer Demand: Demand should remain weak as business...
