S&P downgrades Brazil’s sovereign debt rating
Tuesday, March 25, 2014
ISTANBUL – U.S.-based rating agency Standard & Poor's (S&P) has downgraded Brazil's sovereign debt rating on Monday, taking Brazil to the lowest investment grade.
S&P downgraded the rating from BBB to BBB minus but also changed Brazil's outlook from negative to stable, signifying that any further downgrades are not expected.
"The downgrade reflects the combination of fiscal slippage, the prospect that fiscal execution will remain weak amid subdued growth in the coming years, a constrained ability to adjust policy ahead of the October presidential elections, and some weakening in Brazil's external accounts," said S&P in a statement on its website.
The agency added that it had given Brazil a stable outlook because it believes the country's institutions and policies would be able to react to any external economic shocks.
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