Debt Ratio, Policy Work Needed for Brazil Rate Hike: S&P

Debt Ratio, Policy Work Needed for Brazil Rate Hike: S&P

Bonds Corporate & Sovereign Strategy

Brazil will need to see a sharper decline in its debt-to-GDP ratio and improve its fiscal policy in order to move up the ratings ladder after reaching investment grade last week, S&P analysts said in a conference call Friday. “The key to keep moving up the ratings table will be an effort to bring fiscal policy in line with higher-rated countries,” says Lisa Schineller, S&P MD. She sees the ending of the CPMF tax in December as an example of a setback. The decision to raise the Selic 50bp to 11.7

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