Standard & Poor's downgraded Brazil's credit rating deeper into junk territory on Wednesday, citing its failure to curb its fiscal deficit, in a surprise blow to President Dilma Rousseff`s bid to haul the economy out of its worst recession in decades.
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.
Greece on Tuesday became the first developed country to join a roster that includes some of the world’s poorest and worst governed nations, including Iraq, Sudan, Somalia and Zimbabwe. Those are a few of the countries that have missed payments to the IMF as Greece did Tuesday, when it failed to make a loan payment of about 1.5 billion Euros, or $1.7 billion, to the fund.
Rating Agency Standard and Poor’s (S&P) downgraded Argentina’s economic and financial outlook to “negative,” after the expropriation of YPF, which endangers the “B” rating the country has for its sovereign debt.
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.
Argentina’s most populous province is preparing a return to international bond markets to benefit from the lowest borrowing costs in two years. Buenos Aires province hired Bank of America and Deutsche Bank AG to arrange investor meetings in Europe and the US as it plans to sell 500 million US dollars in debt.