October recorded 7,0 million defaulting companies, the largest number ofhistorical series do Serasa Experian Corporate Default Indicator, first and largest datatech in Brazil. This total represents 32,3% of the existing companies in Brazil. The value of the debts, when added, hit the unprecedented mark of R$ 156,1 billion.On average, each CNPJ had about 7,4 accounts in default during the period. Check below the data from the last 24 months (amounts and value of debts)
"This increase in delinquency can be attributed", largely, the rise in interest rates. When interest rates rise, the cost of credit for companies also increases, making it more expensive and difficult for them to obtain financing. This directly affects the companies' ability to manage their cash flow and meet their financial obligations. Furthermore, the increase in interest rates can reduce the demand for products and services, once consumers and other businesses also face higher credit costs, resulting in lower revenue for companies. This scenario creates a vicious cycle, where the difficulty of access to credit and the reduction of revenues lead to an increase in delinquency, negatively impacting the financial health of companies, comments the economist from Serasa Experian, Luiz Rabi
“Services” sector led default rate in October
The "Services" sector represented the largest portion of companies with negative commitments (56,2%). Next was the "Commerce" (35,4%), followed by the "Industries" (7,3%), "Primary" (0,8%) and the category "Others" (0,3%), that encompasses the Financial sector and the Third Sector. In relation to the debt sector, the category "Services" represented the largest part of them (31,0%) followed by "Banks and Cards" (21,1%). See, next, the detailing of this excerpt
Maranhão led the ranking of companies with overdue accounts
In October, the analysis of the Federal Units revealed that Maranhão recorded the highest default rate of companies in the country, with 43,0% of the companies in the state with the CNPJ in the red. Next, Alagoas (42,3%) and Amapá (40,8% also stood out among the states with the most companies facing financial issues. See the full information in the graph below
The 7,0 million companies with negative credit in October, 6,5 million were of micro and small size. Together, these companies totaled 46,5 million debts, whose total value was R$ 134,1 billion. On average, each defaulting company had 7,1 overdue bills. See below the breakdown by states:
To check more information and the historical series of the indicator, Click here.
Methodology
The Serasa Experian Indicator of Business Default includes the number of Brazilian companies that are in default status, that is, have at least one overdue and unpaid commitment, settled on the last day of the reference month. The Indicator is segmented by state, door and sector
