Default rate of Brazilian companies up 36% in December

Special Report:Global Financial Crisis

RIO DE JANEIRO, Jan. 26 (Chinese media) -- The default rate of Brazilian companies

was up 36 percent in December compared with the same period in 2007, the highest

increase since 1999, according to a study released on Monday by credit

consulting company Serasa Experian.

Compared with November, December's default rate was up 5.9 percent. In

2008, the default rate among Brazilian companies was up 4.8 percent compared

with 2007.

According to Serasa Experian, the high default rate was caused by the

international financial crisis and its impact on Brazil, namely the reduction of

both credit and demand.

Serasa Experian said an increase the default rate of consumers, also caused

by the crisis, was another factor in the default rate of the companies.