Brazil Upgrade Hinges on CPMF Response: Moody's

Brazil Upgrade Hinges on CPMF Response: Moody's

Brazil

Moody's believes the Brazilian government's decisions in the coming days on how to address a new BRL40bn gap in its 2008 budget caused by the cancellation of the CPMF tax will be critical in determining its ascent to investment grade next year. Mauro Leos, head of sovereign risk for Latin America at Moody's, tells LatinFinance that Brazil's maintenance of its fiscal targets, including the primary surplus, as well as whether or not and to what extent it chooses to fill part of the gap with cuts i

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