The rating agency Standard & Poor’s downgraded Brazil’s rating from BB+ to BB with a negative outlook. Back in September, S&P lowered the rating below the investment grade. The challenges that Brazil faces remain considerable according to S&P, that now expects a more prolonged adjustment process, with a slower reduction in the fiscal deficit and another year of economic contraction. USD/BRL remained steady after the news, consolidating at daily lows and head toward the lowest close in six days. Tomorrow after Brazilian markets open the real could come under pressure. The decision was not a surprise and the rating could be downgraded further. For more information, read our latest forex news.