Saturday, August 29, 2015

Brazil should have been downgraded below investment grade last year

 Read more at http://www.project-syndicate.org/commentary/financial-early-warning-system-by-nouriel-roubini-2015-08#Bhlurxy2j6VkCPhD.99


Brazil should have been downgraded below investment grade last year, as the economy struggled with a widening fiscal deficit, a growing economy-wide debt burden, and a weak and worsening business environment. The corruption scandal at energy giant Petrobras is finally causing ratings agencies to reassess Brazil, but the move comes too late, and their downgrades probably will not be sufficient to reflect the true risk. Other emerging markets also look fragile and at risk of an eventual downgrade.







Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

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