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...
Keywords: Banco Bradesco, Banco Itau, Cosan, FDI, Gol, IRB-Brasil Re, reinsurance, Vale, Vale-Columbia Center on Sustainable International Investment, Vivo