Here’s What Brazil Investors, Lawmakers Are Saying About S&P Cut

Brazil had its credit rating cut to junk by Standard & Poor’s on Wednesday after the close of markets, with a negative outlook. The downgrade sent the ETF that tracks Brazilian shares plunging in late trading. Here’s what lawmakers and investors are saying:

MARKET REACTION:
* Brasil Plural: “If the timing of the downgrade was only mildly surprising, the combination of downgrade with negative outlook is a genuine negative surprise,” according to a note signed byMario Mesquita, partner and chief-economist at the firm and a former central bank director. Asset prices should react “in a major way,” with the currency likely to breach 3.90 per U.S. dollar on Thursday and stocks selling off. Other rating companies will probably follow S&P in downgrading, according to the note.

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