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Brazil slams Standard & Poor's over downgrade

Staff writer ▼ | March 28, 2014
A Brazilian official slammed the downgrade of his country's credit rating by Standard & Poor's, saying the rating agency is incompetent and Brazil's economy is solid.
Brazil
BrazilA Brazilian official slammed the downgrade of his country's credit rating by Standard & Poor's, saying the rating agency is incompetent and Brazil's economy is solid.


Brazil's Minister of Institutional Relations Ideli Salvatti questioned the capability of S&P, saying "it did not even manage to realize the risk of the 2008 crisis. The Brazilian economic figures are very solid when it comes to the population's quality of life: jobs, macroeconomic control, foreign exchange reserves and foreign investment."

Brazil's central bank said it will rise to meet its economic challenges, including embracing a combination of austerity policies, exchange rate flexibility and the use of Brazil's cash reserves.

S&P announced Monday that it was downgrading Brazil's credit rating from BBB to BBB-, citing Brazil's "weak external accounts" and "fiscal slippage."

In addition, S&P said, Brazil's low growth prospects "reflect both cyclical and structural factors," and the government has little room to maneuver in the face of external shocks.


 

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