S&P cuts Brazil rating to 'junk'

Rising deficit prompts downgrade

Ratings agency Standard & Poor's has stripped Brazil of its investment-grade credit status, giving it a ‘junk' rating.

S&P said the country's political challenges, particularly as net debt continues to rise, were the main reasons behind the downgrade, reported the Guardian. Brazil, steel, John Menzies: Investors' top contrarian trades revealed S&P said: "The political challenges Brazil faces have continued to mount, weighing on the government's ability and willingness to submit a 2016 budget to Congress" that met economic targets. Brazil's long-term foreign and local currency ratings have been downgraded to BB+ and BB- respectively. S&P also issued a series of negative forecasts: "We now expect t...