Spain – Brazil
Moody's has improved Brazil's credit rating outlook from negative to stable, maintaining the Ba2 rating, two notches below investment grade, in light of the stabilization of the economy and an incipient recovery in economic growth, accompanied by stability.
institutional that should favor reforms.
The agency's analysis has caused surprise, as it was published at the same time as major street protests are taking place in the country's main cities against pension cuts, and the public prosecutor's office continues to open new corruption investigations against dozens of politicians, some of them very prominent. Public support for the reforms is minimal, and the Central Bank forecasts GDP growth of only 0,48% for 2017, which does not bode well for a rapid improvement in the situation. Inflation remains contained, but this improvement is mainly due to a lack of credit and a drop in consumption. It is rare for a rating agency to issue such an optimistic rating in such a complicated situation.
Source: CESCE
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