Brazil's Rating Cut Further Into Junk Territory by S&P
- Foreign-currency debt rating is lowered to BB from BB+
- S&P has negative outlook on Brazil sovereign credit rating
This article is for subscribers only.
Brazil’s debt rating was cut deeper into junk territory by Standard & Poor’s, which cited fiscal and political challenges for Latin America’s largest economy.
The long-term foreign-currency rating was reduced one level to BB with a negative outlook, S&P said in a statement Wednesday. The new level, two steps below investment grade, puts Brazil on par with countries including Bolivia, Paraguay and Guatemala. Petroleo Brasileiro SA, the battered state-run oil giant, had its rating cut two notches to B+, four below investment grade, S&P said in a separate report.