Ratings agency Standard & Poor’s (S&P) downgraded Brazil’s credit rate three levels below the investment grade, with a stable outlook.
The stable outlook means the ratings company will have to wait at least six months to change the country’s credit rate again. Investment grade means certainty that a country is not at risk of public debt default.
S&P said Brazil is taking too long to implement reforms to help reducing fiscal risk, particularly a proposed pension reform. “Despite various policy advances by the Temer administration, Brazil has made slower-than-expected progress in putting in place meaningful legislation to correct structural fiscal slippage and rising debt levels,” said an S&P news release.
The other two main ratings agencies, Fitch and Moody’s, have not changed the country’s credit rate so far, keeping it two levels below the investment grade.