Ratings agency Moody’s Tuesday lowered its outlook on Brazilian debt to negative from stable, citing weak growth and poorer dynamics for debt financing. In a statement, the agency said a  “growing risk of a long period of fragile growth and deterioration of debt parameters” threaten “a reduction in Brazil’s solvency.”  Moodys currently maintains its rating for Brazilian debt at an investment grade level of Baa2. The reduction of the outlook for the country’s debt comes after the country registered a 0.6% contraction in the second quarter that put the economy into a recession.  Local authorities, including Finance Minister Guido Mantega have said they expect the economy to accelerate in the second half of the year after a slowdown in the first two quarters. Mr. Mantega, however, said the government would nonetheless revise its growth projections downward this year from a current 1.8%. According to the Brazilian central bank’s latest weekly market survey, the country’s economy is seen growing only about 0.5% this year after registering growth of 2.3% in  2014. In March this year, ratings agency Standard & Poors lowered its rating for Brazilian assets to BBB- from BBB. Fitch ratings agency, meanwhile, has maintained its rating at BBB.