Brazil Outlook Lowered to Stable by Moody’s as Growth Cools

Moody’s Investors Service lowered its outlook on Brazil’s sovereign rating to stable from positive, citing deteriorating debt and investment ratios and evidence the economy is going through a low-growth period.

“Even though there are signs that the Brazilian economy may be starting to recover, Moody’s view is that, if and when the upturn materializes, it is unlikely that it will be strong enough to restore a positive trend in Brazil credit metrics,” Moody’s said in a statement dated Oct. 2. It affirmed Brazil’s Baa2 government bond rating, the second-lowest investment grade.