Brazil 'BBB-/A-3' Foreign Currency Ratings Affirmed; Outlook Remains Stable

OVERVIEW Brazilian President Dilma Rousseff faces an extremely challenging political and economic backdrop amid a sharp decline in approval ratings, economic contraction, and corruption investigations at Petrobras. In a reversal of policy from her first term, the president has tasked her economic team with engineering a marked adjustment in various policies--not only fiscal--to restore lost credibility and strengthen Brazil's now weaker fiscal and economic profiles. We are affirming our long-term foreign currency sovereign credit rating of 'BBB-' and our long-term local currency sovereign credit rating of 'BBB+'. The stable outlook reflects our expectation that the politically challenging policy correction underway will continue to garner the support of President Rousseff, and ultimately Congress, gradually restoring lost policy credibility and paving the

...OVERVIEW + Brazilian President Dilma Rousseff faces an extremely challenging political and economic backdrop amid a sharp decline in approval ratings, economic contraction, and corruption investigations at Petrobras. + In a reversal of policy from her first term, the president has tasked her economic team with engineering a marked adjustment in various policies--not only fiscal--to restore lost credibility and strengthen Brazil's now weaker fiscal and economic profiles. + We are affirming our long-term foreign currency sovereign credit rating of '###-' and our long-term local currency sovereign credit rating of '###+'. + The stable outlook reflects our expectation that the politically challenging policy correction underway will continue to garner the support of President Rousseff, and ultimately Congress, gradually restoring lost policy credibility and paving the way for stronger growth prospects next year and thereafter. RATING ACTION On March 23, 2015, Standard & Poor's Ratings Services...

Ratings Action