1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

Brazil’s downgrade to continue in 2016 – Deutsche Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Córdoba) - Yesterday Fitch downgraded Brazil credit rating by one notch, still above the “investment grade”. According to the Research Team at Deutsche Bank the country will lose the investment grade either from Fitch or Moody’s in 2016.

    Key Quotes:

    "The Fitch downgrade was not a surprise, as its Brazil rating was one notch above Moody’s and two notches above Standard & Poor’s, although we believe the continuation of the Negative outlook came in on the bearish side of expectations.”

    “We nevertheless believe that, because of the country’s political stalemate and fiscal quagmire, at least one agency will follow S&P and cut Brazil’s rating below investment grade in 1H16.”

    “In addition, we do not believe the Fitch downgrade will significantly improve Congress’ willingness to pass the government’s fiscal package (which includes the CPMF tax on financial transaction). We retain our underweight recommendation on Brazil credit at this point.”
    For more information, read our latest forex news.
     

Share This Page