12 Aug 2015
Further downgrades lies ahead for Brazil – BBH
FXStreet (Edinburgh) - The Research Team at BBH assessed the recent downgrade of the Brazilian economy by agency Moody’s.
Key Quotes
“Late Tuesday, Moody’s downgraded Brazil one notch to Baa3”.
“The big shock is the stable outlook. The fiscal and debt numbers are still getting worse, and so Brazil should be on review for further downgrade”.
“Our own rating model has Brazil at BB+/Ba1/BB+, so we think it loses its investment grade in 2016 from S&P”.
“With the stable outlook, Moody's seems unlikely to cut again until 2016”.
Key Quotes
“Late Tuesday, Moody’s downgraded Brazil one notch to Baa3”.
“The big shock is the stable outlook. The fiscal and debt numbers are still getting worse, and so Brazil should be on review for further downgrade”.
“Our own rating model has Brazil at BB+/Ba1/BB+, so we think it loses its investment grade in 2016 from S&P”.
“With the stable outlook, Moody's seems unlikely to cut again until 2016”.