President Luiz Inácio Lula da Silva famously called it a “magic moment” when Standard & Poor’s raised Brazil’s credit rating to ‘investment grade’ status in April. President Lula’s ‘moment’ became even better when Japan’s R&I, Canada’s DBRS and Fitch Ratings followed, awarding Brazil its second, third and fourth investment grade ratings.
Brazil’s rise out of junk or speculative status is important for more than the government’s credibility: it allows some of the biggest overseas pension and insurance funds to invest in the country.
