Home > Views > Blogs > Market Movers > Brazil Finally Gets its Investment-Grade Credit Rating
PRINT
RSS
SHARE
TEXT SIZE:
Send a copy to me

Separate multiple email addresses (max 20) with commas.

0/1500
Letters are not case-sensitive, disregard spaces.
captcha image
Try a New One
This helps us prevent automated registrations and spamming.

Main
The US Economy Reaches a Fork in the...   How a Weaker Dollar Can Mean a Bigge...
Apr 30 2008 5:43PM EDT

Brazil Finally Gets its Investment-Grade Credit Rating

File under "about time too": Brazil has finally been upgraded to an investment-grade credit rating by S&P. The stock market hit a new record high in celebration, and the bonds tightened in even further:

The yield to the 2015 call date on Brazil's 11 percent bonds due in 2040 fell 23 basis points to 4.98 percent in New York, according to JPMorgan Chase & Co.

Yep, Brazil's bond yields are now lower than its spreads have historically been.

The upgrade is overdue if only because Brazil is now a net creditor nation, with reserves of more than $170 billion, and net creditors simply don't default. But ratings are sticky things, and ratings agencies are generally reluctant to issue both upgrades to investment grade and downgrades from investment grade. Now Brazil has its triple-B credit rating, it's extremely unlikely to lose it at any point in the foreseeable future.

See more in

Loading...


Recent Blog Posts

Archive

May 2008



Also in Portfolio.com
Most Emailed
Recently Commented