Fitch release this morning a new report on Brazil (Brazil’s Loss of Investment Grade: Ratings Downgrade Drivers and Future Trajectory) in which the rating firm explains that its December 2015 downgrade of Brazil’s sovereign rating to speculative grade (BB+) was a reflection of the country’s deeper economic recession, adverse fiscal developments, rising government debt burden, and increased political uncertainty. Fitch highlighted the persistent risks still surrounding Brazil’s economic and political situation. Prospects remain weak in the medium-term. The slower growth and the failed fiscal consolidation expected to have happened under former finance minister Joaquim Levy does not bode well for an year the Rio will host the Olympics and the political climate is still very volatile.

The report seem to be available only to Fitch services subscribers.

Source: http://www.reuters.com/article/idUSFit946041