The credit rating agency Fitch Ratings reaffirmed Brazil’s sovereign credit rating in foreign currency at “BB-“, with a negative outlook, which in turn reflects negative risks to the economy, public finances and the debt trajectory.
The “rating” step keeps Brazil in the group of countries considered more risky, the so-called “speculative grade”.
“Fiscal uncertainties, high inflation and volatility in the real will weigh on the economy in 2022 and increase the risk of a full-blown recession, while higher sovereign borrowing costs, coupled with a higher primary deficit, will lead to a renewed deterioration in finance public in 2022,” Fitch said in a statement.
“Downside risks could be exacerbated by a potentially polarizing election race in 2022,” he added.
Reference: CNN Brasil
