December 17, 2015 |
Brazil’s 2025 RegS notes widened by 30bp to 40bp at midday trading on Wednesday, after Fitch downgraded the sovereign to junk. Bankers were surprised the bonds moved as much as they did, one DCM source said, although the ratings cut itself was somewhat expected.
Fitch cut the sovereign's rating a notch to BB+, citing a further-weakening economy and political instability, which could hurt the government’s ability to implement fiscal reforms. The downgrade leaves Brazil with two sub-investment gra
Fitch downgrades South American sovereign to BB+