A relatively little-reported (at least from English-language sources) snippet late Thursday: Brazil has received a second upgrade to its government debt.
At the end of last month, S&P shifted the country’s rating up to investment grade, and now Fitch has joined the party. For big institutional investors, investment-grade ratings are required from at least two of the large agencies, so Fitch’s decision will almost certainly mark a turning point for outside investment in Brazil.
Stock market response was subdued amid signs that the upgrade was expected – Pimco’s Mohamed El-Erian called it ‘an overdue recognition of the realities on the ground in Brazil’ – but as Reuters reported, the real ended Thursday at its highest level against the dollar since 1999.
Excitement about the B in BRIC seems to be mounting recently – two weeks ago the FT noted that Brazil was pricing bond deals at lower spreads than Berkshire Hathaway.
So, who should be looking at Brazil? Marc Chandler of Brown Brothers Harriman is answering readers’ questions on FT.com on Monday – you can drop him an advance question here.
Related links
FT Q&A
Brazil finally gets its investment-grade credit rating – Felix Salmon