Standard & Poor’s said on Thursday that it might downgrade Brazil’s rating further into junk territory as a political crisis delays important measures to rebalance the country’s finances.
S&P director Lisa Schineller said on a conference call that the agency would keep a negative outlook for the country’s rating as long as political uncertainties remain, suggesting a greater than one-in-three likelihood of another downgrade following a ratings cut on Wednesday.
S&P downgraded Brazil’s credit rating deeper into junk territory to BB from BB+ on Wednesday, just five months after becoming the first agency to strip the country of its coveted investment grade.
Brazil’s overall budget deficit is likely to remain high and economic growth weak, Schineller said, as impeachment proceedings against President Dilma Rousseff put off measures to bolster tax revenue and reduce government spending.
Brazil Energy Insight 
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