S&P keeps Brazil's investment grade, but outlook is now negative
The credit-rating agency Standard & Poor's (S&P) announced Tuesday (Jul 28) that it has maintained Brazil's long-term foreign currency credit rating at BBB-, but shifted its outlook to negative. 
The credit-rating agency Standard & Poor's (S&P) announced Tuesday (Jul 28) that it has maintained Brazil's long-term foreign currency credit rating at BBB-, but shifted its outlook to negative. The country is therefore still deemed safe for investors.
The agency announced that there has been “a significant policy correction during Dilma Rousseff's second term,” but nonetheless the country has faced challenging political and economic circumstances. S&P points out that the corruption probes targeting politicians and companies are taking their toll on Brazil's economic and fiscal outlook and jeopardizing the full implementation of correction policies, especially in Congress. In the view of the credit -rating agency, Brazil's risks have risen since March this year, when the last analysis was made.
“We've revised our outlook for Brazil to negative in order to reflect what we believe is a greater chance that the policy correction will, in the future, face slippage arising from the fluid political dynamics, and that returning to a firmer upward trend will take more time than expected,” S&P declared.
Translated by Fabrício Ferreira
Fonte: S&P keeps Brazil's investment grade, but outlook is now negative
