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S&P cuts Brazil to junk: what it means
S&P cut Brazil's sovereign credit rating to BB+.
The Bovespa index fell about 0.6 percent on Thursday. The real tumbled more than 1.75 percent.
Although a downgrade was expected, the timing of the demotion was unexpected.
Standard & Poor's has downgraded Brazil’s sovereign credit rating to BB+. While the move came as no surprise, the timing did catch many analysts and investors off guard, as the demotion was expected for later this year.
In addition, the firm maintained the outlook on the rating at negative. This also surprised most analysts.
Read more at Benzinga, here.
Photo: Sam valadi