Goldman Sachs and rating agencies keep watch on Brazil's economy

Representatives from Goldman Sachs, one of the world's main investment banking and management firms, met on Tuesday (Mar 17) morning at the Finance Ministry with acting Secretary for Economic Monitoring Pablo Fonseca dos Santos. Their talk focused on “the performance of the Brazilian economy,” the ministry reported.

Ever since Brazil announced changes in its fiscal policy, economists from investment companies have worked to keep Brazil's figures under close scrutiny. On Wednesday (Mar 18), auditors from the credit rating agency Fitch may meet with analysts from the Finance Ministry, and with Minister Joaquim Levy on the next day. These appointments are pending confirmation from the ministry.

Early this month, Levy received representatives from  Standard & Poor's, another rating firm, to lay out the economic measures aimed to ensure medium-term fiscal sustainability and monetary stability.

During the meeting, the finance minister pointed out that the plans implemented are key to “preserving investors' confidence in the economy—a condition crucial for sustainable growth and the preservation of already-achieved social gains.”

Moody's, Fitch, and Standard & Poor's are held as the world's biggest rating agencies.

A rating is a grade given to a country or organization by agencies that specialize in credit analysis. These institutions assess bond issuers' ability to pay debts on time and in full. Thus, the rating is an important indicator for investors, as it provides them with a view of the credit risk of a country's or firm's debt.

Translated by Fabrício Ferreira