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18 Nov 2011

S&P upgrades Brazil's credit rating

Brazil's credit rating upgraded from BBB- to BBB

Standard and Poor's Corp has upgraded its credit rating on Brazil by one notch, to BBB. "We are raising our long-term foreign currency sovereign credit ratings on Brazil to 'BBB' from 'BBB-' and our long-term local currency ratings to 'A-' from 'BBB+'," the ratings agency said in a statement.

The document noted that the upgrade reflected Brazil's increasing capacity to hold up against the overall deterioration in the global economic outlook. Brazil is one of the five BRICS nations -- which include China, Russia, India and South Africa -- expected to count as the major economic powers of the future.

The Brazilian foreign ministry welcomed the upgrade, saying it was recognition that the country's economic policy was heading in the right direction and its macro-economic fundamentals are "solid."

It described the S&P announcement as evidence of the "success of the management of the Brazilian economy in its goal of strengthening the country."
S&P said the government of President Dilma Rousseff has "demonstrated its commitment to meeting fiscal targets, thereby enlarging the scope for using monetary tools to influence the domestic economy."