(Reuters) – Rating agency S&P Global on Tuesday upgraded Brazil’s long-term ratings to “BB” from “BB-” after the country’s recently approved tax reforms.
S&P expects the country to maintain a strong external position, with limited requirements for external financing needs to assist in fiscal correction.
Brazil reported a smaller-than-expected current account deficit in October, helped by a trade surplus.
The rating agency Brazil’s outlook to “stable” from “positive” on expectations the country’s fiscal deficits will remain large and progress on addressing its economic weaknesses will be slow.
Last week, Fitch affirmed Brazil at “BB” and maintained a “stable” outlook.
(Reporting by Akshita Toshniwal in Bengaluru; Editing by Shounak Dasgupta)
