S&P cuts Brazil credit rating

|By:, SA News Editor

Standard & Poor's cuts Brazil's sovereign debt rating to BBB-, the agency's lowest investment-grade rating, citing a combination of fiscal slippage, the prospect that fiscal execution will remain weak amid subdued growth in the coming years, a constrained ability to adjust policy ahead of the October presidential elections, and some weakening in Brazil's external accounts.

S&P changes its outlook to stable from negative, meaning further downgrades are unlikely for now.

The downgrade was expected, but the timing prior to the October election, in which Pres. Rousseff will seek re-election, may pose a headache for her government.

Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ