Brazil Returns to Junk as Bonanza Ends and Crisis Snares Levy

Brazil is junk — again.

Seven years after Standard & Poor’s lifted the nation’s credit rating to investment grade, reflecting the rising influence of emerging markets, Latin America’s largest economy has lost its vaunted designation.

S&P’s decision late Wednesday to cut Brazil’s rating one step, to BB+ with a negative outlook, underscores its worsening economic and political prospects, as well as the troubles plaguing other developing nations, including China and Russia.

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