Brazil’s stellar economic performance, making it one of the most dynamic BRIC-emerging market (EM) economies, has led to a credit upgrade by Fitch, which raised its issuer default rating for Brazil one notch to BBB. The credit rating agency cited a smooth power handoff from Lula to Dilma Rousseff, sustainable potential growth rate, and an improving medium-term fiscal position, adding to the country’s capacity to absorb external shocks, as reasons for the recent upgrade, while it revised its rating outlook to stable from positive.
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