Brazil faces turmoil as rating slashed

摘要

Brazil's sovereign bonds and credit default swaps widened dramatically after Fitch stripped the country of its investment-grade credit rating last week and lowered it to junk. Fitch followed Standard & Poor's, which downgraded the sovereign to BB+ in September, leaving Brazil with two junk ratings for the first time since spring 2008. Moody's rates Brazil at Baa3 but put that rating on review for a downgrade to junk earlier this month. The widening reflected deepening worries about Brazil, where months of political turmoil and a corruption scandal at state oil company petrobras have hampered efforts to revamp the economy.