The Guardian, 02/24/2016
Brazil’s economic gloom deepened on Wednesday when credit rating agency Moody’s downgraded the recession-hit nation’s sovereign debt status to junk.
Moody’s said the outlook for Brazil’s issuer and bond ratings was negative due to the prospect of further deterioration in debt ratios amid an economic contraction, as well as the risk of further external shocks.
The announcement, which follows similar downgrades by Standard & Poor’s and Fitch came as no surprise and has been largely priced into markets. But that is hardly cause for relief. While everybody can see the Brazilian economy is in peril, nobody seems to foresee a way out.