Translated by Tom Gatehouse – Folha de S. Paulo, 02/08/2016
The credit ratings agency Standard & Poor’s downgraded Brazil from BB+ to BB on Wednesday (17), after deciding that the country’s process of fiscal adjustment will take longer than expected. The outlook is negative.
S&P stripped Brazil of its investment grade rating in September last year, with Fitch following suit in December. Of the big three ratings agencies, only Moody’s has maintained Brazil’s investment grade status – though it too is considering a downgrade.
In a statement, S&P said that it expects the public deficit to be on average 7% of GDP between 2016 and 2018, with public debt expected to be around 60% of GDP.