Brazil Ratings Removed From CreditWatch And Affirmed At 'BB/B'; Outlook Is Negative On Ongoing Policy Challenges

RATINGS Foreign Currency: BB/Negative/B Local Currency: BB/Negative/B For further details, see Ratings List. OVERVIEW Since we placed our ratings on Brazil on CreditWatch with negative implications in May, the political landscape is somewhat more settled as President Temer survived a vote--by the Federal Electoral Court (TSE) in June and by Congress in August--related to corruption charges. Meanwhile, the economy appears to have stabilized despite fluid politics, Congress passed a labor reform in July, and the government remains committed to advancing some pension reform, containing expenditure growth to minimize deviation from its primary fiscal targets, and advancing its active microeconomic reform agenda. We are removing our long-term sovereign ratings on Brazil from CreditWatch with negative implications and affirming them at 'BB'.

...RATINGS Foreign Currency: ##/Negative/B Local Currency: ##/Negative/B For further details, see Ratings List. OVERVIEW + Since we placed our ratings on Brazil on CreditWatch with negative implications in May, the political landscape is somewhat more settled as President Temer survived a vote--by the Federal Electoral Court (TSE) in June and by Congress in August--related to corruption charges. + Meanwhile, the economy appears to have stabilized despite fluid politics, Congress passed a labor reform in July, and the government remains committed to advancing some pension reform, containing expenditure growth to minimize deviation from its primary fiscal targets, and advancing its active microeconomic reform agenda. + We are removing our long-term sovereign ratings on Brazil from CreditWatch with negative implications and affirming them at '##'. We are also affirming our 'B' short-term sovereign ratings. + The negative outlook, however, reflects ongoing political challenges and the risk of...

Ratings Action