Brazil’s Bovespa stock index jumped to a record after Standard & Poor’s unexpectedly raised the country’s credit rating to investment grade.
Brazil’s rating was lifted to BBB-, Standard & Poor’s lowest investment grade rating, the rating company said today.
S&P cited the country’s “continuity” in maintaining its inflation targeting policy and government debt levels “increasingly in line” with investment grade countries.
Brazil became a net foreign creditor for the first time this year, inflation dropped to a seven-month low in February and the benchmark interest rate was at a record low 11.25 percent before this month’s increase. The country’s economy probably grew at a 4.8 percent rate last year, the fastest since 2004, according to the median economist estimate in a Bloomberg survey.
Things are looking up.
The big news in Brazil, however, is that soccer star Renaldo got caught with three transvestite prostitutes because of “psychological problems due to his knee injury.”
When it comes to excuses, that’s a new one.