Weekly Report - 27 March 2014 (WR-14-12)

BRAZIL | S&P downgrade. On 24 March the credit ratings agency, Standard & Poor’s (S&P), announced it was downgrading Brazil’s sovereign debt rating from BBB to BBB-. Though anticipated, the timing of the decision surprised some market watchers and government officials, who expected the news to come after October’s elections. The fact the downgrade has come now shows the extent of the gloom pervading market analysis of Brazil’s future growth prospects.