S&P revises upward Brazil’s sovereign credit rating from stable to positive

Tuesday, May 24th 2011 - 00:40 UTC

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Prospects for steady long term economic growth, says the credit rating agency

Standard & Poor's said on Monday it had revised its outlook on Brazil's sovereign credit rating to “positive” from “stable,” citing the prospect for steady, long-term economic growth.

“The positive outlook reflects Brazil's strengthening prospects for steady, long-term GDP growth, along with modest current account and fiscal deficits that should gradually reduce the country's vulnerability to negative external shocks,” S&P said

The more bullish view comes as a number of South American nations--including Chile, Peru and Colombia--have been praised by ratings agencies for more than a year as they were less affected by the global economic slowdown than nations with more developed economies.

Robust economic growth in Brazil underscores the importance of emerging markets as the developed world struggles with a sluggish rebound from the global economic slowdown. The pace of growth in Brazil moderated a bit later in 2010 compared to expansion seen earlier last year, when government tax breaks on consumer goods sparked demand.

The country's long-term foreign currency sovereign credit rating currently stands at BBB-, the lowest investment-grade rating. S&P raised Brazil's currency rating out of junk in 2008.

S&P also praised Brazil’s recent steps to contain short-term inflation pressures which it said demonstrated the government's commitment to contain macroeconomic risks.

Categories: Economy, Brazil.

Tags: Brazil, economy, Standard & Poor.

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Forgetit87
From positive to stable? That doesn't even make sense. I think Mercopres meant from stable to positive.

We all know the clever people at Mercopress is unable to properly translate articles in Spanish and Portuguese. But being unable to understand its own language is a bit too much.

http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245305250908
May 24th, 2011 - 02:41 am 0
yul
For all we see ,Mercopress correctly translated S & P 's fantastic ratings as saying of Brasil's note is from stable to positive.
As we know that all Rating Institutions are the tools of speculative capital,,, few years ago I remember Bear Stearns's note was increased from stable to positive just one month before it's bust....

my note on Brasil is mildly negative ,here are facts :

2008/ Stocks in Bovespa ....75 billions US $
2011/ Stocks in Bovespa ....260 billions US $

2008/ Fixed Income derivatives ...120 billions US $
2011/ Fixed Income derivatives ...400 billions US $

2008/ Foreign Direct Investments ... 50 billions US $
2011/ Foreign Direct Investments ... 60 billions US $
May 24th, 2011 - 10:44 am 0
Forgetit87
They altered the title after my complaint. Before they said that ratings had been upgraped from positive to stable.
May 24th, 2011 - 04:40 pm 0

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