CHAMPION: President Luiz Inacio Lula da Silva on Friday as he meets race car drivers in Brazil. (Photo: Ricardo Stuckert/Brazilian President's Office)
Brazil reaches investment grade earlier than expected. Meanwhile, FDI is setting new records. Brazil's boom appears without end.
BY CHRONICLE STAFF
It was only fitting that President Luiz Inacio Lula da Silva spent Friday receiving a delegation of the country’s stock race car drivers. After all, Brazil – on his watch – had reached the finish mark of investment grade and done so much faster than expected.
U.S. credit rating agency Standard & Poor's on Wednesday upgraded its rating of Brazil to investment grade. "The upgrade was very much awaited, and while S&P was seen as most likely to deliver first on this prospect, the move actually took place sooner than most (us included) expected," Merrill Lynch says in an analysis today.
OTHER POSITIVE NEWS
In Latin America, only Chile and Mexico are rated investment grade.The upgrade comes as Brazil is seeing other positive news as well. Last week, the Central Bank released foreign direct investment figures showing that the first quarter was a new record as was March alone. Much of the increase is due to Brazil’s reinsurance market opening up to foreign competition.
Meanwhile, HSBC last week released a report showing that Brazil’s banking sector is expected to continue booming. “Total private sector loans rose...
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From: John Santos, Belo Horizonte - Brazil Brazil is booming everywhere you look. John Santos
From: Martin Gajewski Jr., Fortaleza-Chicago Someone is forgetting the real estate boom, huge demand and a tidal wave of foreign investors flocking to the tables, building front beach resorts,villas and apts while fighting over land to develop tourist havens in the 7,000km coast on the Atlantic Ocean with the Northeast leading the masses with the cheapest land around.
From: marco, spain So how much of a safe bet for investing is Brazil? Would it be fair to say that Brazil comes up as one of the best emerging markets to invest your money, but what are the pitfalls?
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