Thursday, August 23, 2007

Brazil is Almost Investment Grade

Bloomberg reported that Moody’s just upgraded Brazil's credit rating, leaving the largest Latin American economy one level below investment grade. In fact, the agency raised Brazil's government local- and foreign-currency bond ratings to Ba1 from Ba2. The improvement in the country's debt profile was cited as a reason for the upgraded. Moody’s also raised Brazil's foreign-currency bond ceiling, a reference for non-government issuers of bonds, to Baa3/Prime-3 from Ba1/Not Prime, the first time that rating was lifted to investment grade.
The upgraded helped

Moody's lifted the Brazilian government's local and foreign- currency bond ratings to Ba1 from Ba2, citing an improvement in the country's debt profile, according to an e-mailed statement.
``It's a significant upgrade,'' Rodrigo de Rato, a managing director at the International Monetary Fund, told reporters in Brasilia today. ``This shows that the Brazilian economy is more solid and that the country's conservative economic policy will bring more positive consequences.''
The ratings agency also raised Brazil's foreign-currency bond ceiling to Baa3/Prime-3 from Ba1/Not Prime, the first time that rating was lifted to investment grade.
Moody's said it anticipates Brazil's government debt will continue to shrink, and its external debt indicators will continue to strengthen.

No comments:

Post a Comment