Brazil markets fall less than feared after S&P downgrade to junk

Asher Levine – Reuters, 9/11/2015

Brazil’s financial markets fell on Thursday after Standard & Poor’s cut the country’s rating to junk late Wednesday, though losses were mitigated by bets that competing ratings agencies will not immediately strip Brazil of its investment grade.

Brazil’s rating downgrade, which came sooner than many in the market had expected, reflected President Dilma Rousseff’s struggle to regain investor confidence as political turmoil drives a growing government deficit in Latin America’s largest economy.

The Brazilian real BRL= fell nearly 3 percent to a 13-year low of 3.9 per U.S. dollar before closing at 3.8497, down 1.3 percent on the day.

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