Risk Agency also fears that sanctions can reach Brazilian banks, affecting transfronight transactions and undermining investors’ trust
The risk classification agency reported on Saturday (13), that new sanctions from the United States to Brazil, after the former president’s conviction by the Supreme Court (STF), may come in the form of reversal of the exemptions granted to Brazilian products.
Sectors such as aircraft exports, oil and fruit juice, which today appear on the list of tariff exceptions, are the most vulnerable, while Brazilian banks could also be hit by any measures. Another risk is in the financial sector, which represents 22% of US foreign investment in Brazil.
Brazil has a rating of ‘BA1’ by Moody’s, a step below the investment degree in the agency classification. In May this year, the classification changed the perspective of the Brazilian Positive Note for Stable, providing for a longer term for tax consolidation in Brazil.
*With information from Estadão Content
Posted by Carol Santos
