World Economy

Brazil rating outlook cut by Fitch on rising debt

Fitch Ratings lowered its outlook for Brazil's long-term foreign and local currency issuer default ratings to "negative" from "stable."

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The ratings agency cited Brazil's continued economic underperformance and an increase in government debt as reasons for the change in outlook.

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While the government has begun a macroeconomic adjustments to boost policy credibility and confidence, downside risks related to its effective implementation and durability persist, Fitch said.