This is the last article you can read this month
You can read more article this month
You can read more articles this month
Sorry your limit is up for this month
CREDIT ratings agency Standard & Poor’s (S&P) downgraded Brazil’s sovereign debt rating to “junk” status yesterday, jeopardising foreign investment.
The move by the Wall Street institution piles more pressure on President Dilma Rousseff amid pushes by opposition figures to have her impeached.
S&P said that Brazil’s investment grade status, which it held for seven years, was gone and that the outlook on the country was negative.
“The political challenges Brazil faces have continued to mount, weighing on the government’s ability and willingness to submit a 2016 budget to Congress consistent with the significant policy correction signalled during the first part of President Dilma Rousseff’s second term,” the agency said.
Brazil is entering recession and is expected to see an even worse 2016.
The downgrade will make it more expensive for Brazil to borrow on international markets and much foreign direct investment, including from funds that only back investment-grade nations, will automatically be withdrawn.
While widely expected, the move came earlier than many analysts forecast and arrives at a time of extreme volatility for the Brazilian economy, with inflation hovering around 10 per cent and unemployment the highest it has been in decades.
And S&P said: The negative outlook reflects what we believe is a greater than one–in–three likelihood of a further downgrade.”
Last month nearly a million Brazilians took to the streets against attempts to overthrow Ms Rousseff and her Workers’ Party government.
Parliamentary Speaker Eduardo Cunha, a former Rousseff ally who has been leading calls for her impeachment, was charged the same day over a corruption scandal.
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by joining the 501 club.
Just £5 a month gives you the opportunity to win one of 17 prizes, from £25 to the £501 jackpot.
By becoming a 501 Club member you are helping the Morning Star cover its printing, distribution and staff costs — help keep our paper thriving by joining!
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by become a member of the People’s Printing Press Society.
The Morning Star is a readers’ co-operative, which means you can become an owner of the paper too by buying shares in the society.
Shares are £1 each — though unlike capitalist firms, each shareholder has an equal say. Money from shares contributes directly to keep our paper thriving.
Some union branches have taken out shares of over £500 and individuals over £100.
You can’t buy a revolution, but you can help the only daily paper in Britain that’s fighting for one by donating to the Fighting Fund.
The Morning Star is unique, as a lone socialist voice in a sea of corporate media. We offer a platform for those who would otherwise never be listened to, coverage of stories that would otherwise be buried.
The rich don’t like us, and they don’t advertise with us, so we rely on you, our readers and friends. With a regular donation to our monthly Fighting Fund, we can continue to thumb our noses at the fat cats and tell truth to power.
Donate today and make a regular contribution.