Friday, September 11, 2015

Brazil cut to 'junk' credit rating by Standard & Poor's

COMMENT: We'll tell you why this matters to Santa Barbara - and Exxon - soon.  Check back for the answer.  - Ed. 

From:  BBC

Getty photo - Ms Rousseff had tried to head off a downgrade with austerity measures


Brazil has lost its investment-grade credit rating following a downgrade by Standard & Poor's to "junk" status.

The US rating agency said mounting political turmoil and the difficulties faced by President Dilma Rousseff's government in tackling growing debt was behind the decision.

Brazil was awarded an investment-grade rating by S&P in April 2008, when the country's economy was on the rise.

However, sliding commodity prices and austerity have created a recession.  MORE