BRAZIL: S&P downgraded Sovereign credit Rating upgrades To BB – From BB
S&P’s Global credit Ratings has lowered the long-term foreign and local currency sovereign credit ratings of Brazil to BB – from BB. The Outlook on the ratings is stable.
“The weakening of our institutional evaluation of Brazil reflects slower than expected progress and less support by the political class to correct meaningful legislation structural fiscal slippage on a timely basis,” S&P said in a report. “The recent political developments to anticipate the risk of greater political uncertainty after national elections later this year.”
According to the credit risk rating Agency, the stable Outlook “reflects our view that there is a less than one-in-three probability that we will raise or lower the ratings of Brazil in the coming year.”
S&P also said that Brazil strengthen the comparative, external, and monetary policy, which will help offset significant fiscal weakness, while the economy of the country, the growth has weakened prospects for lower-than-peers and the “effectiveness of political decisions on the branches of government.”
The rating Agency warned that “we could lower the ratings, which arise in the coming year, unforeseen weakness in Brazil, should the balance of payments, either affect market access, or generate a strong increase in the foreign debt.”