New Credit Ratings in Brazil Means Investment is Booming

In a widely expected move, U.S. credit rating agency Standard & Poor has upgraded its rating of Brazil to investment grade. The agency upgraded Brazil from a BB+ to BBB- adding that the nation has a "stable" long-term perspective rating which means the grade is likely to remain for a long time.

The long-awaited move will make it possible for a wider universe of international investors, including massive U.S. pension funds, to plunge into the Brazilian stock market. The upgrade sparked a 6.3% rise in the index of the São Paulo stock exchange, or BOVESPA, which soared to an all-time high of 67,868 points.

The upgrade is expected to spark positive ripple effects throughout the economy. It was immediately followed by another S&P ratings boost to investment-grade for nine Brazilian banks, which have benefited from a consumer spending boom that has produced a surge in housing construction and automobile sales

The upgrade comes as Brazil is seeing other positive news as well. The Central Bank has just released foreign direct investment figures showing a new record was achieved in the first quarter of 2008, with much of the increase due to Brazil’s reinsurance market opening up to foreign competition.

Institutional investment into Brazil is soaring and it remains one of the most attractive destinations for private property investors as well.

Please click on the link for more information about overseas investment property in Brazil

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