Brazil’s Credit Rating at Risk of Cut to Junk Grade by S&P

Of the three biggest ratings companies, S&P has taken the toughest stance on Brazil. Moody’s Investors Service and Fitch Ratings have the country rated a notch higher, providing a bigger buffer from the junk-grade threshold.

A downgrade by S&P would undo the progress made under former President Luis Inacio Lula da Silva, who led the country in 2008 to obtain investment-grade status for the first time. At that point, S&P was forecasting that Brazil should be able to maintain annual growth of as much as 4.5 percent.

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