Brazil's Junk Relapse Makes Its Bonds Even Riskier Than Russia

  • Brazil bonds trade in line with lower-rated Bolivia debt
  • In past 18 months, Brazil has suffered three rating downgrades

El-Erian: Brazil Is Stuck in a Vicious Cycle

Lock
This article is for subscribers only.

Brazil’s plunge into junk status may be far from finished.

On Wednesday, Standard & Poor’s stripped Latin America’s biggest country of its investment grade, lowering it to BB+ and keeping a negative outlook on its debt.