Brazil Credit Rating Cut to Junk by S&P Amid Budget Strain
- Nation's sovereign credit rating given negative outlook
- Rousseff administration struggling to shore up fiscal accounts
Brazil's Credit Rating Downgraded to Junk
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Brazil’s sovereign rating was cut to junk by Standard & Poor’s, taking away the investment grade the country enjoyed for seven years, as President Dilma Rousseff’s struggles to shore up fiscal accounts amid a faltering economy.
The country’s rating was reduced one step to BB+, with a negative outlook, S&P said in a statement after markets closed. Brazil’s largest U.S. exchange-traded fund tumbled 6.6 percent in late trading along with American depositary receipts for Petrobras, the state-controlled oil company.