The rating agency S&P reaffirmed this Wednesday (15) Brazil’s long-term sovereign rating in foreign currency at “BB-“, keeping the outlook stable.
According to the agency, resilient private consumption and favorable terms of trade should lead to higher-than-expected growth in the Brazilian economy in 2022.
S&P also said that the stable outlook for the sovereign credit rating considers Brazil’s high fiscal deficit and favorable debt composition and external position.
The agency assessed that continued political pressure will increase social spending and that the cost of debt will contribute to Brazil’s fiscal deficits between 2022 and 2025.
S&P maintains Brazil in the so-called “speculative grade” – a classification associated with countries with higher debt risk. Fitch also gives Brazil a “BB-” rating, while Moody’s gives it a “Ba2” rating – both at speculative grade.
Source: CNN Brasil
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