Brazil's economy is clearly growing again after a severe recession and will be shielded from a political crisis by widespread support for the government's reform agenda, Finance Minister Henrique Meirelles said, despite the fact Moody's on Friday announced it was lowering the country's credit outlook.
China has received a downgrade on its credit score, on worries about the future state of the economy. Moody's Investors Services brought down China's long-term local currency and foreign currency issuer ratings by one notch to Aa3 from A1, a move that could lead to a rise in the cost of borrowing for the Chinese government and state-owned enterprises. The ratings agency also changed its outlook for China to stable from negative.
Brazil's president Michel Temer and senior lawmakers were unwavering in their support for a major pension reform on Wednesday despite nationwide protests against the proposal and the dramatic expansion of a graft probe threatening the ruling coalition.
Despite the Argentine government’s forecast of a much better economic scenario in the second half of the year, credit rating agency Moody’s disagrees, saying the economy is set to shrink by 1.5%, followed by a growing unemployment and an inflation rate well above 30%.
Puerto Rico's Government Development Bank announced Monday that it was only able to make a partial payment on its Public Finance Corporation (PFC) debt service due over the weekend. In response to the non-payment of the full service, credit rating agency Moody's said it viewed the situation as a default.
Concerns that Brazil may lose its coveted investment grade credit rating are again on the rise among government officials and investors who worry that President Dilma Rousseff’s austerity push won’t fully offset plunging government revenues.
Moody's Investors Service lowered its outlook on Brazil's government bond rating to 'negative' from 'stable', saying the country's sustained low economic growth and worsening debt metrics reflected a risk of reduced creditworthiness.
Moody's Investors Service lowered this week the long-term issuer ratings of Brazilian state banks BNDES and Caixa Econômica Federal, citing their eroding capital position after years of rapid credit expansion, but spared the also government controlled Banco do Brasil.
Argentina’s GDP expanded 1.9%, following an increase of 2.1% in the last quarter of 2012, compared to the 8.9% of 2011, according to the official but questioned national stats office Indec release on Friday.
Uruguay finally managed on Thursday to achieve investment grade debt rating from the three major agencies when Fitch raised the country’s rating to BBB-minus from BB-plus, citing economic resilience as well as the political and social stability of the country, squeezed between Brazil and Argentina.