Standard and Poor’s has placed Brazil’s sovereign credit rating under “review” with the risk of a possible downgrade within the next three months. S&P currently rates Brazil BB, or two notches below investment grade. In a statement, S&P said Brazil was under review because of rising political instability in the wake of corruption charges leveled against President Michel Temer. The ratings agency said political uncertainties put into question the ability of Brazil’s government to effect crucial fiscal reforms. Both Moody’s Investors Service and Fitch Ratings last week made similar statements. Brazil’s political landscape was altered last week when allegations were aired of possible bribery and other corrupt practices involving President Temer.
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