Recognition for the solidity of the Brazilian economy came this week from the global credit rating agency Moody's Investment Service when it moved the country's sovereign debt ratings up to investment grade.

The grades are designed as a guide for investors to the credit-worthiness of commercial and government borrowers.

Moody's is the third of the major credit rating agencies to have promoted Brazil to investment grade to in the past eighteen months – the others were Standard & Poor's and Fitch Ratings in 2008. Chile is the only other country in South America to have been awarded investment grade status by Moody's.

Moody's regional credit officer for Latin America, Mauro Leos, drew attention to the resilience of the Brazilian economy in the face of global financial turmoil, noting 'the modest and short-lived contraction in GDP, minimal weakening in the country's international reserve position, moderate deterioration in the government debt indicators, and lack of financial stress in the banking system'.

Brazilian finance minister Guido Mantega said the decision by Moody’s reflected the 'good management' of the economy.

Source: Embassy of Brazil in London