São Paulo – Credit rating agency Moody’s has stripped the Brazilian economy of investment grade status this Wednesday (24). The last of the three major agencies to take this step, Moody’s ascribed the move to deteriorating Brazilian debt indicators, weak growth and challenging political dynamics.
Moody’s downgraded the country two notches with a ‘negative outlook,’ meaning another downgrade could be in store in coming months. By withdrawing investment grade status, the agency signals that the country could potentially default on its debt, which often scares away investors.
*Translated by Gabriel Pomerancblum
