Brazil Faces Disastrous Downgrade Debacle: Here's What You Need To Know
Back on September 9, S&P threw Brazil in the junk bin.
“We anticipate that within the next year [another] downgrade could stem in particular from a further deterioration of Brazil's fiscal position, or from potential key policy reversals given the fluid political dynamics, including a further lack of cohesion within the cabinet,” the ratings agency noted, explaining its negative outlook. “A downgrade could also result from greater economic turmoil than we currently expect either due to governability issues or the weakened external environment.”