Moody's cuts Brazil rating to near junk status

http://www.dw.com/en/moodys-cuts-brazil-rating-to-near-junk-status/a-18642207

Ratings agency Moody's has cut Brazil's credit rating to near junk status, reflecting growing struggles with debt and a looming recession. The South American nation is the seventh largest economy in the world.

Moody's cuts Brazil rating to near junk status
11.08.2015

According to Moody's ratings agency, a weakening economy, rising government spending and "lack of political consensus on fiscal reforms" were damaging Brazil's ability to get its financial house in order.

The US-based agency said it had "downgraded Brazil's government bond rating to Baa3 from Baa2," taking all factors into consideration. However, Moody's investors' service department also said in a statement that it had "changed the outlook on the rating to stable from negative."

The agency also predicted that government debt would continue to deteriorate, but said that Brazil retained "a number of credit strengths that are reflected in its Baa3 rating."

Second downgrading within a month's time

On July 18, Standard and Poor's credit rating agency had already lowered Brazil to BBB-.