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Brazil benefits from third credit rating upgrade
18/11/2011
Brazil has received the third upgrade of its credit rating this year, after Standard & Poor (S&P) followed moves by Moody's and Fitch in upgrading their foreign and local currency credit ratings for Latin America's largest economy.
The endorsement from S&P raised Brazil's foreign currency credit rating by one notch to 'BBB' and its local currency rating to 'A-'. The rating agency indicated that Brazil's strength stands in contrast to the situation in Europe and the US.
An S&P representative explained, "We expect the government to pursue cautious fiscal and monetary policies that, combined with the country’s growing economic resilience, should moderate the impact of potential external shocks and sustain long-term growth prospects."
Brazil's debt fundamentals are already currently seen as better than those of many European countries that are rather stricken at the moment by the turmoil concerning Greece and Italy. In contrast, spreads on Brazil's debts are in fact trading higher than those of many countries in the eurozone.
The country's gross domestic product has been predicted to rise by 3 per cent this year which, while less than half of the 7.5 per cent growth seen last year, will still be enough to sustain the growth of Brazil's middle classes.
The endorsement from S&P raised Brazil's foreign currency credit rating by one notch to 'BBB' and its local currency rating to 'A-'. The rating agency indicated that Brazil's strength stands in contrast to the situation in Europe and the US.
An S&P representative explained, "We expect the government to pursue cautious fiscal and monetary policies that, combined with the country’s growing economic resilience, should moderate the impact of potential external shocks and sustain long-term growth prospects."
Brazil's debt fundamentals are already currently seen as better than those of many European countries that are rather stricken at the moment by the turmoil concerning Greece and Italy. In contrast, spreads on Brazil's debts are in fact trading higher than those of many countries in the eurozone.
The country's gross domestic product has been predicted to rise by 3 per cent this year which, while less than half of the 7.5 per cent growth seen last year, will still be enough to sustain the growth of Brazil's middle classes.
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