Brazil Cut by Fitch, Outlook Negative on Political Gridlock

  • Company downgrades Brazil to BB, in line with Moody's, S&PGR
  • Fitch expects the economy to contract 3.8 percent this year
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Brazil was downgraded by Fitch Ratings, which kept a negative outlook on the nation’s debt citing a deeper-than-anticipated recession and political instability.

Fitch cut the rating by one level to BB, in line with grades from S&P Global Ratings and Moody’s Investors Service. Fitch had last downgraded Brazil in December. The rating is in line with those of Croatia, Bolivia, Paraguay and Guatemala.