S&P Global Ratings downgraded the sovereign ratings of Brazil citing less timely and effective policymaking.
The agency lowered the ratings to 'BB-' from 'BB', with a stable outlook. The current rating is three notches below the investment grade.
S&P said Brazil made slower-than-expected progress in putting in place meaningful legislation to correct structural fiscal slippage and rising debt levels on a timely basis.
According to S&P, the absence of cohesive political support for corrective economic measures diminishes the prospects for a solid and prompt response following the 2018 elections.
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