logo_anba_en logo_camera_en
23/02/2018 - 16:44hs

Fitch downgrades its rating on Brazil

The rating agency lowered the country’s rating to -BB – three levels below the investment grade – with a stable outlook.

Brasília – The rating agency Fitch Ratings lowered its rating on Brazil’s sovereign debt to -BB with a stable outlook. The previous rating was BB with a negative outlook. With the downgrade, Brazil remains among the countries that don’t carry the stamp of reliable payer.

According to the ratings agency, the downgrade was due to the large and persistent fiscal deficits and the weight of the government’s debt, which continues to increase, plus the lack of reforms to improve the structural performance of public finance. Fitch also mentions as a factor for the downgrade the government’s decision to postpone the vote for the reform of the pension system.

Last month, the ratings agency Standard & Poor’s (S&P) downgraded Brazil to three levels below the investment grade, with a stable outlook. Since February 2016, Brazil was rated two levels below the investment grade. The other main ratings agency, Moody’s, still hasn’t changed the country’s ratings, keeping Brazil two levels below the investment grade.

*Translated by Sérgio Kakitani

Send by Email


Your comment will be sent to a moderator before being published.