A Review Of The Factors That Could Most Influence Brazil's Sovereign Creditworthiness

Summary: On June 6, 2013, Standard & Poor's Ratings Services revised its outlook on the Federative Republic of Brazil to negative from stable, and as stated at that time, the negative outlook reflected S&P´s view that there is at least a one-in-three likelihood that Brazil's rising government debt burden and eroding macroeconomic stability could lead to a downgrade over the next two years. We also stated that continued slow economic growth, weaker fiscal and external fundamentals, and some loss in the credibility of economic policy given ambiguous policy signals could diminish Brazil's ability to manage an external shock. Now, in this edition of creditMatters TV, Sebastián Briozzo, S&P Sovereign Ratings Director, discusses our current view on Brazil's sovereign ratings and their outlook.