Aug 1 A crippling recession and doubts over the approval of structural economic reforms will keep credit conditions in Brazil weak for some time, Moody’s Investors Service said on Monday.
The rating agency, which stripped Brazil of its investment grade rating in February, said in a statement that credit conditions have stabilized with improved market sentiment and a weaker Brazilian real that has helped exporters.
But political uncertainty coupled with lower commodity prices and global risk aversion will keep the credit outlook under pressure.
“The ongoing political turmoil complicates the government’s fiscal repairs and delays structural reforms to support growth and curb the government’s debt burden,” Moody’s said in the statement.
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