São Paulo – Credit rating agency Standard & Poor’s has downgraded Brazil again this Wednesday (17). This time, the country’s rating went from BB+ to BB, with a negative outlook, meaning yet another downgrade might be in store in coming months.
In September last year, S&P had lowered Brazil’s score, with another agency, Fitch, following on its footsteps. Out of the major three such agencies, Moody’s is the only one that still rates the country as investment grade, i.e. unlikely to default – but it has warned that a downgrade is a possibility.
In a statement, S&P said political and economic challenges persist, and that economic adjustments will take longer than previously expected before coming to fruition.
*Translated by Gabriel Pomerancblum
