São Paulo – Risk agency Moody’s changed this Tuesday (9th) the outlook on Brazil’s government bonds from stable to negative.
According to the agency, the change reflects the rising risk of low growth and worsening debt indicators. These factors may indicate a reduction in Brazil’s credit worthiness, says Moody’s.
At the same time, the agency reaffirmed the risk rating on Brazilian bonds at Baa2, due to the country’s resilience to external financial shocks given its international reserve buffers.
Last October, Moody’s downgraded Brazil’s sovereign debt rating outlook from positive to stable. Back then, the agency also kept the country’s investment rating at Baa2.
*Translated by Rodrigo Mendonça
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