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June 20 (Bloomberg) -- Brazil’s debt rating was raised one level by Moody’s Investors Service, which cited President Dilma Rousseff’s efforts to cut spending in Latin America’s biggest economy.
Moody’s lifted Brazil’s rating to Baa2, the second-lowest investment grade, from B3, the ratings company said in a statement. The outlook is positive.
Rousseff, who took office on Jan. 1, has pledged to reduce government spending by 50.7 billion reais ($32 billion) in a bid to cool the economy and restrain inflation. The economy will grow 4 percent this year after a 7.5 percent expansion in 2010 that was the fastest in more than two decades, according to the median estimate of 19 analysts in a Bloomberg survey. The rating increase follows upgrades from Standard & Poor’s last month and Fitch Ratings in April.
“Willingness on the part of the government to reverse expansionary policies and adopt a conservative policy stance that appears more consistent with a sustainable growth path,” Moody’s said in the statement.
--Editors: Lester Pimentel, David Papadopoulos
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