Moody’s downgraded the credit rating of Brazil’s Baa2 to lower Baa3 – RIA Novosti

© AP Photo / Mark Lennihan

MOSCOW, August 12 – RIA Novosti. The international rating agency Moody’s downgraded the sovereign credit rating of Brazil’s Baa2, assigned to her four years ago, to the lowest investment Baa3, thus changing the outlook to stable from negative, according to a press release on the website of the company.

Brazil – the seventh largest economy in the world, after the United States, China, Japan, Germany , Britain and France, its GDP in 2014, according to the IMF amounted to $ 2.3 trillion. Moody’s upgraded the rating of Brazil from Baa3 to Baa2 in 2011 with a positive outlook, which was then changed to stable, and in September 2014 – a negative.

The reasons for the rating change were the weaker against the expected economic performance. According to the agency, the burden of government debt will continue to grow in 2015-2016.

According to a press release, increased government spending and the lack of consensus in political circles about the tax reform will not allow the country in the next year and a half slow the growth of debt. According to experts of the investment agency, the trend can not be changed until the change of government.

The Brazilian currency in the spring reached 11-year low, falling to 3.19 reais per dollar, and in July increased the incidence and headed for August 7 3.53 reals per dollar. Meanwhile, in 2011, one dollar was about 1.5 Brazilian reals.