UK's credit rating has been cut over concerns about the country's public finances and fears Brexit could damage the country's economic growth. Moody's, one of the major ratings agencies, downgraded the UK to an Aa2 rating from Aa1.
Moody's has lowered its outlook on Uruguay's (Baa2 negative) banking system to negative from stable on the expectation that asset risks will rise moderately as challenging economic conditions weigh on consumers and businesses alike, and profitability will decline.
Argentina's economy grew 0.8% on the first quarter of the year compared to the same period last year, Central Bank Governor Federico Sturzenegger said, declaring that since President Mauricio Macri took office employment has remained “stable.”
Following President Mauricio Macri’s economic policies and the deal with the holdout funds, Argentina will help to bring stability and a larger economic growth to Latin America, now facing a declining economy mainly because of Brazil’s downfall, representatives from the International Monetary Fund said.
Moody's Investors Service on Wednesday joined the two other major credit rating agencies in downgrading Brazil's sovereign debt to junk territory. Moody's lowered Brazil's credit rating by two notches from Baa3 (its lowest investment-grade rating) to Ba2 and changed the country's outlook to negative, a move that follows similar actions by Fitch Ratings and Standard & Poor's.
A growing number of foreign investors are signaling interest in Argentina following the pro-market turn that newly-inaugurated President Mauricio Macri started showing since taking office. The latest financial player to endorse the country as a promising investment destination was JP Morgan Chase, the largest bank in the United States, where current Finance Minister Alfonso Prat-Gay worked in the past.
Brazil’s Congress on Thursday approved a 2016 budget with surplus targets lower than what Finance Minister Joaquim Levy wanted, a day after the country lost an investment-grade credit rating on concerns about fiscal restraint.
Credit ratings agencies have been questioned by the United Nations Conference on Trade and Development (UNCTAD), who says they favor countries with a certain ideological bent.
Credit rating firm Moody’s cut its 2016 global economic growth forecasts, with China and United States both trimmed and Russia and Brazil seen staying in recession.
Moody’s Investors Service cut Brazil’s credit rating to near-junk status on Tuesday but said the country’s coveted investment grade status is safe for now, proving some relief to investors and the government of President Dilma Rousseff.