When will Brazil regain the investment grade?
This report from Novus Capital, an investment management firm, shows that, by 2027, Brazil may reach an acceptable debt to GDP ratio for purposes of receiving investment grade, provided that the government does a very good job on the management of the budget.
In a less than optimistic scenario, the goal of a maximum of 63% of debt to GDP would only be reached by 2040.
The findings are similar to the reports issued by the Brazilian Central Bank on the matter.
Although the findings are not stelar, they are positive. The study shows that the country may stabilize and improve its finances without much effort, just by not increasing expenses.
The cabinet is very much willing to speed up this kind of good news. I would bet that, before long, Brazil will receive at least an update in its rating.
You can download the full report (in Portuguese) here.