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ImoInvest Brazil, Acquisition and development of real estate, leisure and tourism projects.

Brazil set to make the investment grade

Brazil set to make the investment grade in 2008

An asset management specialist believes that Brazil is set to achieve full investment grade status by the end of next year. Luiz Ribeiro, manager of HSBC GIF Brazil Equity fund, said that Brazil's investments market is on an upward trajectory following recent upgrades by ratings agencies Fitch and Standard & Poor's (S&P). Fitch raised Brazil's foreign and local currency credit ratings to BB+ on May 10th, followed by S&P on May 16th when it also raised its long-term foreign sovereign credit rating to BB+. Meanwhile, S&P has raised its long-term local currency sovereign credit rating by two notches to BBB, which means that Brazil has partly attained investment grade status. Mr Ribeiro said: "The ratings upgrades were driven by a steady improvement in Brazil's macro-economic fundamentals that had led to the continued decline in Brazil's fiscal and external vulnerabilities." Being on the brink of full investment grade status is important for Brazil as it opens up the possibility of a significant number of fixed-interest instruments to a large range of heavy-weight investors, according to S&P. Joss Hutton, writing for property website Homes Worldwide, believes that Brazil is "fast becoming an area of international foreign interest", with financial gains looking "extremely promising".