Brazil Rating May Rise on Rousseff Policy, Fitch Says

Brazil’s credit rating may rise from the lowest investment-grade level if President-elect Dilma Rousseff exercises “fiscal restraint” after she takes office Jan. 1, Fitch Ratings said.

Rousseff needs to slow spending growth and reduce debt as she continues the policies of President Luiz Inacio Lula da Silva, Fitch said in a statement, echoing comments by Standard & Poor’s yesterday. Changes to tax and labor laws are needed to increase investment enough to keep pace with economic growth, which may exceed 7 percent this year, Fitch said.