Brazilian real estate boosted by economy ranking
An international ratings agency has raised Brazil’s risk rating to "investment grade" as the country continues to make great economical strides.
Moody’s has moved Brazil from Ba1 to Baa3, ranking it in the top bracket of the investment grade category, which is good news for owners of Brazilian property.
The agency made the decision after analysing the government’s finances and external credit position, as well as other political and regulatory issues. The shift means that the country is now considered a safe home for investments, such as Brazilian property.
Mauro Leos, Moody’s regional credit officer for Latin America, said that the upgrade reflects the firm’s recognition of Brazil’s improvement in its sovereign credit profile.
He added: "Evidence of strong economic and financial resilience can be seen in the modest and short-lived contraction in gross domestic product, minimal weakening in the country’s international reserve position and lack of financial stress in the banking system."
Moody’s was the last of three credit rating agencies to change its ranking of Brazil, leading to stocks rallying late in the day.
