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Jul 28, 2015

Brazil investment grade rating is at risk, S&P warns

SAO PAULO (Reuters) – Standard & Poor’s on Tuesday said Brazil could lose its coveted investment-grade rating in the coming year if fallout from a number of corruption investigations further stymies economic growth and the implementation of austerity measures.

The statement, which sent Brazil’s currency tumbling, is a setback to Finance Minister Joaquim Levy’s efforts to win back investor confidence in the country’s economy, Latin America’s largest, now in recession.

Jul 13, 2015

Moody’s to visit Brazil this week to review sovereign rating

SAO PAULO, July 13 (Reuters) – Moody’s Investors Service is
preparing a highly anticipated review of Brazil’s credit rating
with a visit to Brazilian policymakers and economists this week,
market sources and the ratings agency said on Monday.

Many analysts expect Moody’s to downgrade Brazil’s Baa2
credit rating by one notch at the end of its review process.
Some fear it may also slap a negative outlook on the new rating,
signaling the country’s investment-grade rating is at risk.

Jul 8, 2015

Brazil poses largest emerging market contagion risk: Fitch poll

RIO DE JANEIRO (Reuters) – Brazil poses a larger threat of contagion for global financial markets than other emerging economies, far eclipsing Russia and China, Fitch Ratings said on Wednesday, giving highlights of an upcoming survey of European fixed-income investors.

The investors, who manage an estimated 7.8 trillion euros in assets, considered economic imbalances, political challenges and U.S. interest rates to select the two biggest contagion threats from a list of five major emerging market countries that also included Turkey and India.

Jul 7, 2015

Analysis: Brazil’s investment grade credit rating at risk again

RIO DE JANEIRO (Reuters) – Concerns that Brazil may lose its coveted investment grade credit rating are again on the rise among government officials and investors who worry that President Dilma Rousseff’s austerity push won’t fully offset plunging government revenues.

As Brazil prepares for a crucial ratings review by Moody’s Investors Service in the third quarter, members of Rousseff’s economic team are reaching out to credit ratings agencies to ask for a vote of confidence in the government plan to increase budget savings, a source with access to one of the ratings firms said.

Jul 7, 2015

Brazil’s investment grade credit rating at risk again

RIO DE JANEIRO, July 7 (Reuters) – Concerns that Brazil may
lose its coveted investment grade credit rating are again on the
rise among government officials and investors who worry that
President Dilma Rousseff’s austerity push won’t fully offset
plunging government revenues.

As Brazil prepares for a crucial ratings review by Moody’s
Investors Service in the third quarter, members of Rousseff’s
economic team are reaching out to credit ratings agencies to ask
for a vote of confidence in the government plan to increase
budget savings, a source with access to one of the ratings firms
said.

Jul 2, 2015

Brazil investigates currency market rigging by 15 global banks

By Guillermo Parra-Bernal and Walter Brandimarte

(Reuters) – Brazil antitrust watchdog Cade opened on
Thursday an investigation over alleged currency rigging by a
group of 15 global banks, the first of its kind in one of the
world’s busiest foreign exchange markets.

In a statement, Cade said the banks colluded to influence
benchmark currency rates in Brazil by aligning positions and
pushing transactions in a way that deterred competitors from the
market between 2007 and 2013, at least. Traders who described
themselves as “The Cartel” or “The Mafia” used online chat rooms
to fix their positions ahead of market trades.

Jun 24, 2015

Powerful Brazil CEO arrested in Petrobras graft probe

SAO PAULO (Reuters) – Brazilian police on Friday arrested Marcelo Odebrecht, the head of Latin America’s largest engineering and construction company Odebrecht SA, and accused his family-run conglomerate of spearheading a $2.1 billion bribery scheme at state-run oil firm Petrobras.

Police also apprehended Otavio Marques Azevedo, CEO of Andrade Gutierrez, Brazil’s second-largest builder, as the probe into corruption at Petrobras spread to the highest level of Brazilian business.

Jun 19, 2015

Brazil arrests powerful Odebrecht CEO in Petrobras probe: media

SAO PAULO (Reuters) – Brazilian police on Friday arrested Marcelo Odebrecht, the head of Latin America’s largest engineering and construction company Odebrecht SA, local media said, pulling the most high-profile executive into the corruption investigation at state-run oil firm Petrobras.

Federal officers had orders to arrest a total of 12 people in four states and bring them to the southern city of Curitiba where the investigation is based, according to a federal police statement that did not give the names of the detained.

Jun 10, 2015

Brazil’s central bank reduces support for the real

SAO PAULO, June 10 (Reuters) – Brazil’s central bank decided
on Wednesday to reduce the rollover pace of currency swaps that
mature early next month, a move that is likely to weigh on the
Brazilian real.

The bank said in a statement it will auction on Thursday as
many as 6,300 currency swaps to roll over similar contracts that
mature on July 1. Since the beginning of the month, the central
bank had been offering as many as 7,000 contracts per day.

Jun 3, 2015

Moody’s to decide on Brazil rating after country visit in 3rd qtr

SAO PAULO, June 3 (Reuters) – Moody’s Investors Service
expects to decide whether to downgrade Brazil’s credit rating
only after its analysts meet with the country’s policymakers in
the third quarter, said senior analyst Mauro Leos at the rating
agency on Wednesday.

The agency assigned a negative outlook to Brazil’s Baa2
credit rating last September, warning it could downgrade it over
the next 12-18 months if economic growth remained low or if a
new government that was about to be elected did not tighten
fiscal policy.