• Categories
  • Archives

Moody Gives Brazil Thumbs Up

Brazilian shares rose, overcoming a larger-than-anticipated U.S. trade deficit. The U.S. trade gap widened 7.7% to a record US$ 60.30 billion in November from an upwardly revised US$ 56.00 billion in October.

Economists had expected a smaller deficit of US$ 53.60 billion in November. Brazil’s benchmark Bovespa Index gained 139.73 points, or 0.57%. Shares rose, after Moody’s Investors Service raised its outlook on the country’s B1 credit rating to “positive” from “stable.”


Moody justified the measure saying it was based on “a significant reduction” in the ratio of external debt to current account earnings.


The B1 rating is four notches below investment grade. The upgrade comes just three months after South America’s leading economy rose one notch on the speculative-grade scale.


Turning to corporate items, Companhia Vale do Rio Doce advanced, after the iron ore firm and Germany’s ThyssenKrupp said they hope to decide in the second half of this year on a plan to invest US$ 2.2 billion to construct a 4.4 million ton-per-year steel complex near Rio de Janeiro.


Also, Brazil’s largest private bank, Banco Bradesco, said it has entered into an agreement to provide consumer credit for clients of medium-size retail bank Banco Panamericano.


Under the agreement, Bradesco will provide credit worth 7.2 billion reais. The deal marks the latest sign of fierce competition among Brazilian banks to increase consumer credit operations. Bradesco shares fell.


In other news, an analyst upgraded small Brazilian mobile phone companies Telemig Celular Participações, TIM Participações and CRT Celular to “buy” from “neutral,” explaining that they have the lowest valuations of all the mobile stocks it covers globally.


Thomson Financial Corporate Group
http://www.thomsonfinancial.com/


PRNewswire

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Probe to Have Access to Illegal Bank Activity in the US by Brazilians

In an official note, Brazil’s Ministry of Justice informed that, on February 23, the ...

An ATM (caixa automático) in Brazil

The Brazilian ATM Wouldn’t Give Me My Money. And So Started My Nightmare

You are finally there. Your dream holiday is just about to start. You waited ...

Brazil Looks for Foot and Mouth Disease Source. Cattle Should Be All Vaccinated.

The Brazilian government received several notifications of temporary cancellations of beef purchases, following reports ...

Brazil Government Replaces Aging Boeings with Brazilian Planes

Brazil's Air Force commander, brigadier Juniti Saito, signed Monday, June 2,  in São José ...

G-20 Meets in Brazil, Urges Reforms, Presents No Concrete Proposal

Gathered in Brazil, ministers of Finance and central bank governors of the G-20, the ...

Rousseff Says Brazil Is Just Protecting Itself While US Is Distorting World Trade

Brazilian president Dilma Rousseff, carrying on a tradition since 1947 at the United Nations ...

Brazilian Market Grows with an Arab Zest

Ever since it’s inauguration in 1991, the Emporium São Paulo supermarket chain, founded by ...

The author's boat, the Roamdeep

Brazil Won’t Let My Boat Out, the US Won’t Let My Brazilian Wife In

I received my visa (#A 1416275) to Brazil in Trinidad on October 6, 2002. ...

Brazil’s Ethanol Will Power Japan’s Car Fleet

Brazil agreed Monday to help Japan develop the ethanol industry and thus reduce the ...

Brazil’s Vivo Picks Motorola

The largest mobile telephone carrier in South America with more than 25 million subscribers ...