Petrobras among Brazil borrowers most at risk amid sinking real

• Petrobras (NYSE:PBR) is among the Brazilian borrowers most at risk of seeing leverage ratios swell as the country's real posts the world’s biggest currency losses, according to a Bloomberg analysis.
• For PBR, electric utility Eletrobras (NYSE:EBR), airline Gol Linhas Aereas Inteligentes (NYSE:GOL) and mall operator General Shopping Brasil (OTC:GBRAF), every 10% depreciation in the real boosts the companies’ debt-to-earnings ratio by a factor of 1x, Fitch Ratings says.
• The companies, with a combined $60B of overseas bonds outstanding, are vulnerable to a falling real because they have high levels of foreign currency debt while most of their sales are in the local tender.
• PBR’s $2.5B in bonds due 2024 have dropped ~9% YTD, EBR's $1.75B of bonds due 2021 have tumbled 13% since December, while GOL’s $325M in notes due 2022 have shed 17%.
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