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World-renowned credit rating agency Fitch Ratings announced on Monday the
confirmation of Brazil's investment grade.
Fitch stated that Brazil's Issuer Default Rating will be maintained at the
BBB- level, the lowest investment grade granted by the agency. The country
ceiling will remain at the BBB level, and the credit outlook was revised from
stable to positive.
The outlook was reviewed due to Brazil's economic performance and resilience
in the face of the recession, which exceeded expectations, Fitch stated.
According to the agency, those aspects, together with Brazil's "relatively
prudent economic policies," can help improve the country's per capita income
level and fiscal solvency ratio.
Fitch added that it does not expect any major changes in the country's
economic policy after the presidential elections, which are to take place in
early October.
The agency expects the Brazilian economy to register a growth of 7percent
this year, roughly the same projection made by the Brazilian financial
institutions on Monday.
Fitch was the second of the world's three main credit rating agencies to
grant Brazil an investment grade, in May 2008, months before the escalation of
the international financial crisis. Standard and Poor's granted Brazil an
investment grade in April 2008 and Moody's, in September 2009.
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