Brazil rallies as investors reassess S&P blow, but IG rating in danger

Brazil Lava Jato Petrobras 230x150
By Oliver West
29 Jul 2015

Brazil and Standard & Poor’s rating actions have a peculiar relationship. In March 2014, S&P downgraded the sovereign to BBB- but the bond market subsequently rallied as the rating agency offered a stable — rather than negative — outlook.

That stable outlook is no more. On Tuesday, S&P said that Brazil’s downside risks had “seemingly risen” since March 23 this year, when it last affirmed the rating. Brazil is now the closest it has been to a junk credit rating since September 2009, when Moody’s became the ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial

Want to learn more? View subscription options