Fitch holds Brazil three notches below investment grade

Mentioning Brazil’s degree of indebtedness and the lack of advancement in reforms that cut public spending, credit rating agency Fitch kept its grade for Brazil at BB-, three notches below investment grade.

The agency preserved its stable outlook for the country, signaling that the grade is not likely to be changed in the coming months.

In a statement, Fitch argued that Brazil is facing structural problems linked to public spending and political uncertainties that could hinder growth in the medium run. The strike staged by truck drivers, Fitch added, also harmed the growth expectations for the country this year.