- Moody's cuts its outlook on Brazil's Baa2 credit rating to Stable from Positive, citing deterioration in key credit metrics, an economy unable to break out of a slow-growth phase, and "deterioration in reporting quality of the government accounts."
- The government's debt-to-GDP ratios and the country's investment-to-GDP ratios are weaker than those of sovereigns with just a Baa rating, says Moody's. "Even though there are signs that the Brazilian economy may be starting to recover, Moody's view is that, if and when the upturn materializes, it is unlikely that it will be strong enough to restore a positive trend in Brazil credit metrics, a condition necessary to merit a positive outlook on the country's sovereign rating."
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Moody's warns on Brazil
Oct 3 2013, 13:10 ET