Brazil’s Investment Grade Is Further ‘Down the Road,’ Fitch Says
- Country needs to hit fiscal targets, stabilize debt: Shetty
- Fitch rates Brazil debt two notches below investment grade
Luiz Inacio Lula da Silva’s government has faced mounting scrutiny over its commitment to fiscal health.
Photographer: Andressa Anholete/BloombergThis article is for subscribers only.
Brazil’s government would need to hit its fiscal targets, stabilize government debt around current levels and build fiscal credibility before it can score a credit score upgrade, according to Fitch Ratings.
While a fiscal framework by President Luiz Inacio Lula da Silva’s administration and a long-awaited overhaul of the country’s tax code have been welcomed, Fitch currently doesn’t see the debt burden falling or even stabilizing at a fast-pace yet, said Shelly Shetty, managing director and the head of Asia and Americas Sovereigns at the ratings firm.