Research Update: Brazil 'BB-/B' Sovereign Ratings Affirmed; Outlook Remains Stable

Foreign Currency: BB-/Stable/B Local Currency: BB-/Stable/B For further details, see Ratings List. Brazil's presidential election is set for October amid a wide field of candidates and high levels of voter disenchantment. Elected politicians-–both the president and Congress-–will confront a challenging fiscal scenario and the need to put in place meaningful legislation to correct structural fiscal slippage and rising debt to reverse a key ratings weakness. Delays in advancing corrective fiscal measures thus far and uncertain policy prospects following the 2018 elections weigh on Brazil's sovereign creditworthiness. We are affirming our 'BB-' long-term and 'B' short-term sovereign credit ratings on Brazil. The stable outlook reflects our view that Brazil's comparatively solid external profile and the flexibility and credibility of its monetary

...+ Brazil's presidential election is set for October amid a wide field of candidates and high levels of voter disenchantment. Elected politicians-¡both the president and Congress-¡will confront a challenging fiscal scenario and the need to put in place meaningful legislation to correct structural fiscal slippage and rising debt to reverse a key ratings weakness. + Delays in advancing corrective fiscal measures thus far and uncertain policy prospects following the 2018 elections weigh on Brazil's sovereign creditworthiness. + We are affirming our '##-' long-term and 'B' short-term sovereign credit ratings on Brazil. + The stable outlook reflects our view that Brazil's comparatively solid external profile and the flexibility and credibility of its monetary and exchange rate policy help anchor the long-term rating at '##-' over the next year, balancing economic and fiscal weaknesses and uncertainty about the 2018 presidential elections....

Research Update