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May 19 (Reuters) - Fitch on Brazil:
* affirms Brazil at 'BB'; outlook negative
* says affirmed Brazil's long-term foreign and local currency issuer default ratings (IDRs) at 'BB'
* Brazil's ratings are constrained by structural weaknesses in its public finances, high and rising government debt burden, weak growth prospects,
* issue ratings on Brazil's senior unsecured foreign and local currency bonds are also affirmed at 'BB'
* says Brazil's country ceiling is affirmed at 'BB+' and short-term foreign currency and local currency IDRs at 'B'
* Brazil's ratings are also constrained by weaker governance indicators, & repeated episodes of political instability & have negative implications for economy
* says forecasts general government deficit to average close to 8% of GDP during 2017-2018, down from close to 9% of gdp in 2016
* Brazil's economic recovery prospects remain "challenging" after two years of recession
* says negative outlook reflects continued uncertainties around outlook for Brazil's economic recovery
* high & increasing unemployment rate, corporate and household de-leveraging & lingering fiscal and political uncertainties weighed on economic recovery
* "political environment remains challenging although policy and reform inertia have eased over past few months" Source text for Eikon: