S&P raises Brazil rating outlook to positive for the 1st time since 2019

The international risk rating agency S&P Global Ratings changed this Wednesday (14) the outlook for Brazil’s credit rating from stable to positive. The expectation is that monetary and fiscal policy should become more stable and this should benefit Gross Domestic Product (GDP) growth. This is the first positive change in the country’s rating since 2019.

Brazil’s rating, ie credit note, is BB-/B. The result is obtained through the evaluation of a risk rating agency on a debt security issued by the country. The company said in a statement that the tax framework may result in lower debt.

“Continued GDP growth coupled with the emerging framework for fiscal policy could result in a lower-than-expected public debt burden, which could support monetary flexibility and sustain the country’s net external position,” the agency said.

Finance Minister Fernando Haddad commented on the agency’s decision. “It is an important step, after four years, to have such a signal. I would like to share with Congress and the Judiciary the measures that are being taken in the right direction. This is not possible only from the Executive. The mention of the new fiscal rule, prospects for approving the tax reform, re-encumbering measures. Brazil will return to investment grade, I have no doubt about that”, he pointed out.