Brazil: Basket case or buying opportunity?

clock • 6 min read

Investors were given yet another reason to steer clear of Brazil after political turmoil and high debt levels saw ratings agency Standard & Poor's downgrade the country's status from investment grade to 'junk' this month.

S&P said the general government deficit is expected to rise to an average of 8% of GDP in 2015 and 2016, before declining to 5.9% in 2017 - versus 6.1% in 2014.  It cut Brazil's credit rating from BBB-minus to BB-plus, while the outlook remains negative, meaning further downgrades could soon follow. "The political challenges Brazil faces have continued to mount, weighing on the government's ability and willingness to submit a 2016 budget to Congress that met economic targets," it said.  Following the announcement, the Brazilian real plunged to a 12-year low, at 3.84 to the dollar, ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

Investment Week launches Geographical Equities Conference 2024

Investment Week launches Geographical Equities Conference 2024

Allianz Global Investors, Downing, EdenTree and Royal London Asset Management among speakers

Investment Week
clock 15 January 2024 • 2 min read
Moody's downgrades China sovereign credit outlook to negative

Moody's downgrades China sovereign credit outlook to negative

Retains A1 rating

Elliot Gulliver-Needham
clock 05 December 2023 • 2 min read
ECB warns high rates are pushing economy towards fragility

ECB warns high rates are pushing economy towards fragility

‘Early signs of stress’ in banks

Elliot Gulliver-Needham
clock 22 November 2023 • 2 min read
Trustpilot