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Brazil cut further into junk by Fitch

Staff Writer | February 26, 2018
Fitch downgraded Brazil to BB-, three notches below investment grade and the same as Bolivia and Vietnam. The outlook is stable, Fitch said.
Brazil grows
LatAm   Fitch downgraded Brazil to BB-
The decision reflects Brazil’s “persistent and large fiscal deficits, a high and growing government debt burden and the failure to legislate reforms that would improve the structural performance of public finances,” Fitch said.

Brazil was downgraded further into junk in January by S&P Global Ratings, which also cited slower-than-expected progress on the government’s financial revamp measures.

The administration this month scrapped a plan to vote on the controversial pension bill after struggling for months to gather enough support.

Some investors said they were willing to overlook the latest downgrade and focus instead on growth prospects for Latin America’s largest economy. The Ibovespa is up about 10% since the S&P downgrade last month.