Monday, August 10, 2015

Brazil Next Stop: Downgrade to Junk Debt Status

Brazil is now looking down the barrel of another likely event: a junk rating of its government bonds, says Bloomberg.

Latin America's largest economy has a 70 percent chance of losing its investment grade rating in the next few years, according to the median estimate in a Bloomberg News survey of economists. Standard & Poor's said last week it may downgrade the country's rating and revised its outlook to negative from stable. Brazil's bonds are currently rated BBB- which is one step away from junk.

 -RW

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