The one area executives are keeping a close eye is credit availability. While 57% expect this to improve in the months ahead, a larger percentage (19% versus 2% a year ago) see the potential for less credit availability. In fact, one in four (24%) Brazilian executives cite lack of access to credit as the greatest risk to the growth of their business, only behind slowing economic activity (28%). A similar percentage (23%) indicate that access to credit is vital for their own company’s growth plans. Even as Brazil emerges from several years of economic turmoil, credit availability remains elusive for some companies, as banks and investors hang back until they are sure the signs of economic recovery they’re seeing hold firm.
As Brazilian executives consider their capital accessibility concerns, one in five (19%) cite improving their capital structure as a top capital allocation priority, along with more traditional investments in existing operations (18%) and restructuring their existing business (18%). Nearly half (48%) of Brazilian executives indicate they are reviewing their portfolios every quarter or more frequently. Following their most recent portfolio review, 38% say they reshaped their capital allocation across the whole portfolio.