Brazil’s Credit Rating Upgraded by S&P After Tax Overhaul (1)

S&P Global Ratings lifted Brazil’s credit score after the recent approval of an overhaul of the country’s tax code added to a series of economic reforms that have been implemented in the past few years.

S&P raised Brazil’s sovereign rating by one notch to BB, two levels below investment grade, putting it on par with Guatemala and Dominican Republic. The outlook is stable.

“While it will be implemented gradually, the reform is a significant overhaul of the tax system and will likely translate into productivity gains over the long term,” the ratings firm said in a statement Tuesday.

Fernando Haddad, Brazil’s finance minister, speaks during the Brasil Investment Forum at Itamaraty Palace in Brasilia, Brazil, on Tuesday, Nov. 7, 2023.

Photographer: Andressa Anholete/Bloomberg

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