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. Jair Bolsonaro assumed the presidency of Brazil on Jan. 1, following an electoral process marked by deep voter disenchantment with the established political class. The new administration confronts the challenge of maintaining broad political capital and forging effective Congressional alliances to pass controversial pieces of legislation to correct structural fiscal slippage and a rising debt burden, as well as to bolster trend growth. We are affirming our 'BB-' long-term and 'B' short-term sovereign credit ratings on Brazil. The outlook remains stable, reflecting our expectation of a gradual strengthening of the country's fiscal profile as the Bolsonaro Administration slowly advances policies to reduce Brazil's large fiscal deficit and foster

...+ Jair Bolsonaro assumed the presidency of Brazil on Jan. 1, following an electoral process marked by deep voter disenchantment with the established political class. + The new administration confronts the challenge of maintaining broad political capital and forging effective Congressional alliances to pass controversial pieces of legislation to correct structural fiscal slippage and a rising debt burden, as well as to bolster trend growth. + We are affirming our '##-' long-term and 'B' short-term sovereign credit ratings on Brazil. + The outlook remains stable, reflecting our expectation of a gradual strengthening of the country's fiscal profile as the Bolsonaro Administration slowly advances policies to reduce Brazil's large fiscal deficit and foster more solid growth....

Research Update