Fitch says next few months key to decision on Brazil rating

Fitch Ratings will be in a better position in the next few months to assess Brazil’s political environment, a key element in its decision on whether to strip the country of its investment grade rating, a senior analyst with the agency said on Friday.

Fitch’s senior director, Shelly Shetty, said in a conference call that an escalation of the political crisis will be negative for Brazil’s rating. The agency on Thursday downgraded the country to BBB-minus, its lowest investment-grade rating, with a negative outlook.

The risk that Congress removes President Dilma Rousseff in impeachment proceedings has increased recently, Shetty said, but the agency believes the leftist leader will stay in office.

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