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Oct 30, 2015

Brazil Oi in exclusive talks with LetterOne for merger with TIM

SAO PAULO/MOSCOW, Oct 30 (Reuters) – Brazil’s
telecommunications group Oi SA and investment firm
LetterOne said on Friday they entered exclusive financing
negotiations for a merger with rival TIM ParticipaƧƵes SA

LetterOne, controlled by Russian billionaire Mikhail
Fridman, had offered earlier this month to pour up to $4 billion
into debt-ridden Oi if it merges with TIM, creating the largest
wireless carrier in Brazil.

Oct 16, 2015

Fitch says next few months key to decision on Brazil rating

SAO PAULO, Oct 16 (Reuters) – Fitch Ratings will be in a
better position in the next few months to assess Brazil’s
political environment, a key element in its decision on whether
to strip the country of its investment grade rating, a senior
analyst with the agency said on Friday.

Fitch’s senior director, Shelly Shetty, said in a conference
call that an escalation of the political crisis will be negative
for Brazil’s rating. The agency on Thursday downgraded the
country to BBB-minus, its lowest investment-grade rating, with a
negative outlook.

Oct 15, 2015

Fitch cuts Brazil rating, says investment grade at risk

SAO PAULO, Oct 15 (Reuters) – Fitch Ratings on Thursday cut
Brazil’s credit rating to the brink of junk, warning the country
could soon lose its coveted investment grade rating as
government finances deteriorate amid a prolonged recession and
persistent political uncertainty.

Fitch cut Brazil’s rating to BBB-minus from BBB. It left a
negative outlook on the new rating, suggesting another downgrade
is possible over the next year or so. A further downgrade by
Fitch would mean two major ratings agencies placing Brazilian
debt in junk territory.

Sep 25, 2015

Brazil ramps up real support, but sees reserves as last resort

SAO PAULO (Reuters) – Brazil’s central bank says it might dip into its dollar reserves to support its tumbling currency but people who work closely with the bank say it will use other tools until it sees dollars leaving the economy.

The dizzying drop of the Brazilian real BRL= to all-time lows in recent days has virtually frozen Brazil’s foreign exchange and interest rate markets and raised contagion fears across emerging markets.

Sep 24, 2015

Brazil’s beleaguered currency rebounds after intervention threat

BRASILIA/SAO PAULO (Reuters) – Brazil’s depressed currency rebounded on Thursday after the head of its central bank warned that it is ready to use all instruments in its arsenal to curtail the real’s collapse as investors fret over the future of Latin America’s largest economy.

The real, which earlier in the session had tumbled to a new all-time low of 4.248 to the U.S. dollar, bounced back to 4.069 after central bank president Alexandre Tombini, in an unscheduled press briefing, did not rule out selling part of the country’s $371 billion foreign reserves to calm the exchange rate market.

Sep 23, 2015

Brazil currency tumbles as crisis worries swamp intervention

SAO PAULO (Reuters) – The Brazilian real tumbled anew on Wednesday as fears of deteriorating government finances, a mounting political crisis and weaker Chinese demand for raw materials overwhelmed currency intervention by the central bank.

As the real plunged to an all-time low of 4.14 per U.S. dollar, the central bank called extraordinary auctions to sell currency swaps and dollars with repurchase agreements, joining an array of emerging-market policymakers struggling to support their currencies.

Sep 22, 2015

Brazil better off than countries that lost investment grade -Moody’s

SAO PAULO, Sept 22 (Reuters) – Brazil remains in better
shape than countries that lost their investment-grade credit
rating, a senior analyst with Moody’s Investors Service said on
Tuesday, suggesting the country’s sharp economic downturn was
not enough for a downgrade to junk.

Mauro Leos said that Moody’s expects the recession in Latin
America’s largest economy will stretch into next year, driving
up the country’s debt burden to about 70 percent of gross
domestic product.

Sep 15, 2015

Moody’s cheers Brazil fiscal plan, but lawmakers wary

RIO DE JANEIRO, Sept 15 (Reuters) – Brazil’s recently
announced austerity measures are a positive development, a
senior analyst with Moody’s Investors Service said on Tuesday in
a vote of confidence for President Dilma Rousseff’s plan to
close a 2016 budget deficit.

Yet lawmakers gave the proposed taxes and spending cuts a
chilly reception, underscoring doubts that the president can get
her defiant coalition behind the unpopular plan.

Sep 11, 2015

Brazil still has time to avert 2nd junk downgrade, seen as bigger threat

RIO DE JANEIRO, Sept 11 (Reuters) – Standard & Poor’s
decision to strip Brazil of its investment-grade credit rating
puts pressure on competing ratings firms to follow suit, but the
government still has time to avert another downgrade to junk
which would cost billions of dollars in foreign investment.

While many analysts consider it a matter of time before
Fitch Ratings or Moody’s Investors Service also cut Brazil to a
“junk” or speculative rating, both agencies have signaled they
are in no rush to make that move.

Sep 10, 2015

Brazil downgraded to junk rating by S&P, deepening woes

RIO DE JANEIRO, Sept 9 (Reuters) – Standard & Poor’s
downgraded Brazil to junk-grade credit rating on Wednesday,
further hampering President Dilma Rousseff’s efforts to regain
market trust and pull Latin America’s largest economy out of

The faster-than-anticipated downgrade from investment grade
will likely rock Brazilian financial markets on Thursday and
will increase borrowing costs for the government and Brazilian