First step towards a downgrade as Brazil struggles.
- Ratings affirmed at BBB
- Continued economic underperformance, increased macroeconomic imbalances increasing downward pressure on ratings profile
- Deterioration of fiscal accounts, material increase in government indebtedness also placing pressure on credit
- Forecasts deficits will remain elevated in 2015-16 due to difficulties achieving the primary surplus
- Economic recession in 2015 and subdued recovery next year will continue to put upward pressure on debt
Brazil is sometimes seen as a precursor to broader emerging markets but so far China has steered clear of problems..
