Moody’s upgrades Brazil’s rating amid market uncertainties over public finances – 10/04
After improving Brazil’s rating outlook in May, the credit rating agency Moody’s upgraded the country’s credit rating from Ba2 to Ba1, one level below investment grade. On the fiscal side, the primary result for August recorded a deficit of R$ 22 billion, totaling R$ 100 billion so far this year. To reach the projected target for the year, according to the RARDP, a surplus of nearly R$ 40 billion would be required in the coming months.
In the United States, stronger labor market data are dispelling the recession narrative. Regarding monetary policy, the FED is expected to opt for a gradual reduction in U.S. interest rates, with two more cuts of 25 bps in the November and December meetings.
For more information, please check our Weekly Report 84.
