...Sound Credit Profile: Due to the characteristics of the Brazilian local capital market, 15 companies in Fitch Ratings' Fitch 25 Brazil report are rated `AA(bra)' or above. International corporates rated at this level on a national scale are typically `BB+' or higher. If the five entities rated `AA¡(bra)' are included, the percentage of companies rated `AA¡(bra)' or above represents 80% of the largest 25 issuers in the local debenture market. These sound credit profiles will be challenged in 2014 and 2015 as Fitch projects anemic growth rates of 1.9% and 2.5%, respectively. Selective Domestic Capital Market: Brazil's local capital market has a track record of being restrictive to companies rated below `A(bra)' category. Fitch does not foresee any changes in the market's appetite for riskier credits in 2014 and 2015. As a consequence, Brazilian high-yield corporates will remain decidedly dependent on external capital markets as their primary source of long-term financing. Accessing this market...
