In the past few months, we have seen once-prominent Brazilian companies face financial distress as a result of governmental mistakes, political unease, global decline in oil and gas prices and the downturn in the local credit markets. Most importantly, the Petrobras bribery and corruption scandal has had wide-ranging effects on Brazilian companies, from the criminal prosecution of corporate executives to open-ended prohibitions on future contracts with Petrobras and, in some instances, fines of millions of reais. Fabio Vassel and Luis De Lucio discuss how the current Brazilian economic and political landscape is likely to impact Brazilian companies, lenders and investors in the years to come.