Anadolu Agency

SÃO PAULO — Moody’s Investors Service changed its outlook on Brazil’s government bond rating from “stable” to “negative”, according to a company report released on Tuesday.

The New York-based ratings agency said Brazil’s “sustained low growth” and “worsening debt metrics” all contributed to a risk of reduced creditworthiness, which could “trigger a downward migration in its credit rating”.

“Moody’s expects that Brazil’s economy will continue to record low growth, and estimates that annual GDP [gross domestic product] increases are likely to remain below the country’s potential of around three percent,” the ratings agency said.

The company said it expected economic growth to expand by “less than one percent in 2014 […] the lowest annual rate since 2009” and that next year would see growth “below the two-percent mark.”

Read Full Article