Brazil Credit Ratings Cut to Junk by Moody’s

Brazil’s sovereign rating was cut to junk by Moody’s Investors Service, the last of the major ratings companies to strip the country of its investment grade, as President Dilma Rousseff struggles to shore up fiscal accounts amid deepening political turmoil.

The country’s benchmark stock gauge declined the most in two weeks and the currency weakened after the rating was reduced two steps to Ba2, putting Moody’s grade in line with Standard & Poor’s and one level below Fitch Ratings. The outlook is negative, meaning more downgrades may be coming, Moody’s said in a statement Wednesday.

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