Political Risk Latin America Blog @PolRiskLatam

Based on signs of greater fiscal restraint, Fitch raises Brazil’s credit rating to BBB

Posted in News and Articles, Political Risk by politicalrisklatam on April 5, 2011

by Merco Press News, April 5th, 2011.

Brazil’s credit rating was raised one level by Fitch Ratings, which cited the economy’s growth prospects and budget policy under President Dilma Rousseff.

The country’s foreign debt rating was lifted to BBB, the second-lowest investment grade and in line with Mexico, Russia and Thailand, from BBB-. The outlook is stable, Fitch said in a statement. The ratings company last boosted Brazil’s ranking in May 2008. Standard & Poor’s and Moody’s Investors Service rate the country one step lower at BBB- and Baa3, respectively.

Latin America’s biggest economy is forecasted to grow 4.1% this year after expanding 7.5% in 2010. Rousseff, who took office January first pledged to cut this year’s budget by 50 billion Real (31 billion USD) to help the central bank contain inflation.

“The Rousseff administration has displayed signs of greater fiscal restraint, which coupled with healthy growth prospects should allow for a fall in Brazil’s heavy general government debt burden,” Fitch said in the statement. (continue reading… )


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