DBRS boosts Brazil

DBRS said it upgraded the Federative Republic of Brazil’s long-term foreign- and local-currency issuer ratings to BB from BB (low).

“The upgrade to BB primarily reflects diminishing downside risks to the fiscal outlook. Due to a package of revenue-raising measures earlier this year, the primary deficit is expected to come in around 1% of GDP, an improvement from the projected deficit of 2.3% in the 2023 budget. The government is also putting in place a new fiscal framework that targets a primary balance in 2024 and a surplus of 1% of GDP in 2026. We expect congress will approve the framework in August 2023,” the agency said in a press release.

DBRS said that even if Brazil misses its targets, “the new framework signals that fiscal results will continue to improve during the Lula administration.”

The trend is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.