NEW YORK, July 30 (IFR) – Struggling Brazil took another blow to the chin this week when S&P put the country’s BBB- credit rating on negative outlook, setting the stage for a potential downgrade to junk.
The other agencies could soon follow S&P’s lead, as the government of President Dilma Rousseff fails to get to grips with the country’s deteriorating credit metrics.
A brief recovery in asset prices earlier this year has not stuck, and since a sharp downward revision of government surplus targets, investor confidence – never high – has waned.
Brazil Energy Insight 
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