Good morning! Today, we talk about the outlook of the Brazilian economy, according to S&P. Brazil’s crypto regulation. And a very targeted move by the House Ethics Committee.
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S&P slightly improves outlook for Brazilian finances
S&P Global on Wednesday revised its outlook on Brazil’s long-term sovereign credit ratings from stable to positive. It is the first positive change the agency has made in regard to Brazil’s creditworthiness since 2019. Still, it reaffirmed Brazil’s BB- rating, which is well into junk territory.
Why it matters. The change to a “positive” outlook is a step short of a ratings upgrade, which could happen within the next two years, provided — the agency says — “Brazilian governing institutions are able to implement pragmatic economic policy that contains vulnerabilities in the country’s public finances and sets the stage for better GDP growth.”
Zoom out. Brazil was awarded an investment-grade rating by S&P in April 2008, as the country’s economy reaped the benefits of a commodity super-cycle (remember that Economist cover?).
- The return to junk territory came...