Brazil Elections Seen Credit Neutral

Brazil’s election results are broadly credit neutral for its sovereign rating, says Fitch. The ratings agency says the Rousseff administration is likely to continue Brazil’s macro policy framework. However, Fitch questions whether Rousseff will take measures to make the economy stronger while addressing some of its fiscal weaknesses. It adds that the rating could benefit from continued sound management of the economy, further strengthening of the balance sheet and fiscal improvement. Fitch also says the rating could be upgraded if Rousseff improves the structure of public finances. Much-needed policies to encourage investment and growth could also lead to an upgrade.