Brazil Has Low Chances of Being Upgraded in 2017: Credit Suisse
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
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Nilson Teixeira (Banco de Investimentos Credit Suisse Brasil SA)
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UUID: 7947283
(Bloomberg) -- Low probability of a sovereign rating upgrade in 2017 stems from projections of fiscal results and activity lower than most EM markets and some developed countries, Credit Suisse says in report.
- Brazil “has the worst fiscal dynamics of all countries with similar sovereign credit ratings”
- Fiscal consolidation not enough to recover investment grade; Brazil also needs to implement several other measures to raise its potential growth
- Upgrade also depends on GDP growth, lower unemployment, and an increase in investments as a percentage of GDP
- “After a downgrade, it is more common for countries to have a new rating downgrade than an upgrade,” Credit Suisse says, citing a calculation based on 88 countries
- “Average time for reversal of loss of investment grade is above six years”
- NOTE: Sept. 2015, Brazil credit rating was cut to junk by S&P
Alert: HALISTER1
Source: BFW (Bloomberg First Word)
People
Nilson Teixeira (Banco de Investimentos Credit Suisse Brasil SA)
To de-activate this alert, click here
To modify this alert, click here
UUID: 7947283
