Feb 23 (Reuters) - Fitch Ratings on Friday further lowered Brazil’s credit rating to below investment grade on concerns over its ballooning fiscal deficit, higher debt burden and delays in social security reform.
The rating agency said government of Brazil not putting the social security reform to congressional vote undermines the confidence in the medium-term trajectory of public finances and raises doubt about the political commitment to address the issue.
Fitch downgraded the sovereign’s Long-Term Foreign Currency Issuer Default Rating to ‘BB-‘ from ‘BB’ and revised the rating outlook to stable from negative.
Fitch’s rating action follows its counterpart S&P’s move in January when it cut Brazil’s sovereign credit rating to BB- from BB but raised outlook to stable from negative. (Reporting by Suhail Hassan Bhat; Editing by Arun Koyyur)