Fitch Rates Brazil's 2019 Global Bonds 'BBB-'

Business Wire, Jan 7, 2009

NEW YORK -- Fitch Ratings has assigned a rating of 'BBB-' to Brazil's USD1.025 billion of 10-year global bond (5.875% coupon). The rating is in line with Brazil's foreign currency Issuer Default Rating (IDR).

Brazil's investment grade rating is supported by the significant improvement in Brazil's external and public sector solvency ratios which has diminished the vulnerability of the country to external and exchanged rate shocks. Brazil's sizable stock of international reserves and its net public sector creditor status has enhanced its ability to maneuver in the current unfavorable external environment. A track record of commitment of low inflation and a primary budget surplus have enhanced overall policy management and contributed to entrenching macroeconomic stability in the country. On the other hand, Brazil's ratings are constrained by the structural weaknesses in public finances, a heavy government debt burden, an unfavorable, albeit improving structure of domestic debt and a glacial pace of structural reforms.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.