Good morning! Today, Moody’s more bullish on Brazil. How unions have lost ground. And Lula’s electoral blunder.
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Moody’s changes Brazil’s outlook to positive
Moody’s on Wednesday reaffirmed Brazil’s long-term issuer and senior unsecured bond ratings at Ba2, two notches below investment grade. Meanwhile, the rating agency improved Brazil’s outlook from stable to positive.
👉 Why it matters. While not a rating improvement per se, Moody’s better outlook for the Brazilian economy reaffirms a certain optimism about the country and Finance Minister Fernando Haddad. Last year, both S&P and Fitch upgraded Brazil’s credit rating.
What they are saying. “Moody’s assesses that Brazil’s real GDP growth prospects are more robust than in the pre-pandemic years, supported by the implementation of structural reforms over multiple administrations, as well as the presence...