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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