Julie Wernau – The Wall Street Journal, 12/16/2015
Brazil’s finances took another turn for the worse Wednesday, as a second sovereign-rating downgrade sent the nation’s bonds and currency slumping anew.
Fitch Ratings downgraded Brazil’s bonds to double-B-plus, the highest junk rating, from the lowest investment-grade rating and said further downgrades are possible. The rating company cited Brazil’s ballooning budget deficit, rising inflation and political unrest, all of which have been intensified by the deepening commodity bust.
The move hardly shocked investors, coming at the end of a year that has brought a deepening sense of gloom to Brazilian markets that a decade ago many viewed as holding substantial promise.