Brazil faces challenging political and economic circumstances despite what we consider to be a significant policy correction during President Dilma Rousseff's second term. The number of investigations of corruption among certain politicians and companies is increasingly weighing on Brazil's fiscal and economic outlook, putting at risk effective policy implementation, particularly in Congress. We revised our outlook on the foreign-currency ratings on Brazil to negative to reflect what we believe is a greater than one–in–three likelihood that the policy correction will face further slippage given fluid political dynamics and that the return to a firmer growth trajectory will take longer than expected. In addition, we affirmed our 'BBB-' long-term foreign-currency sovereign credit rating and 'BBB+' long-term local-currency sovereign credit rating on
