Current rating is BBB-

  • Sees 2% contraction in Brazilian GDP this year
  • 'Number of investigations of corruption among certain circumstances despite significant policy correction during Dilma Rousseff's second term
  • Expect govt deficit to rise to 7.5% of GDP from 6.1% in 2014
  • FDI not expected to cover 4% current account deficit in 2015-17
  • Outlook is negative because execution risks to policy changes have risen

The sluggish trend in emerging markets continues.

USD/BRL at the highest in more than a decade, up 2% today.