Standard and Poor’s on Wednesday downgraded Brazil’s sovereign credit rating for the second time in six months, this time to double-B from double-B-plus. In September, S&P downgraded Brazil from investment grade to double-B-plus, a speculative rating. As part of Wednesday’s action, S&P put a ‘negative’ outlook on Brazil’s rating, saying persistent fiscal problems could lead to another downgrade later in the year. In its statement, S&P pointed to a number of problems facing Brazil, including the government’s inability to curb deficits, a broad economic slowdown and a political crisis linked to a sweeping probe into corruption.
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