Fitch raises Brazil’s grade to BB on fiscal, macro-economic results

Risk rating agency Fitch on Wednesday (Jul. 26) upgraded Brazil’s credit rating from BB- to BB with a stable outlook.

The agency cited “better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms that have supported this, and Fitch’s expectation that the new government will work toward further improvements.”

Back in 2018, Brazil’s credit rating had been downgraded to BB-. Upon reevaluation, however, Fitch recognized that the country  “has achieved progress on important reforms to address economic and fiscal challenges.”

During a press conference to discuss Brazil’s upgraded credit rating, Finance Minister Fernando Haddad attributed the success in regaining investment-grade status to Congress support, with the heads of both houses, Arthur Lira and Rodrigo Pacheco, playing vital roles.

“I have always emphasized, and I still believe, that harmony among the branches of power is the way to regain our investment-grade status,” he stated.

He also acknowledged challenges linger still. “We have all the tools to win this game, but there’s a lot of work ahead. Next year will be crucial not only to achieve the set targets but also to implement the approved measures effectively,” the minister added.