Standard & Poor’s downgrades Brazil three levels below investment grade

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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.

Agência Brasil

Written by Agência Brasil

Agência Brasil (ABr) is Brazil's national public news agency. It is a part of the public media corporation Empresa Brasil de Comunicação (EBC).

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