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…
Portugal Telecom Approves Merger With Oi
by BCR Staff •
Shareholders of Portugal Telecom have agreed to revised lower stake in a merger with Brazilian telecom operator Oi, maintaining an option for a larger stake in the future, the companies said. Under the new terms of the deal, Portugal Telecom shareholders agreed to a 25.6% stake, lower than a 38% stake originally proposed. Portugal Telecom,…
Rousseff Says Mantega To Exit If She Is Re-elected
by BCR Staff •
Brazil’s Finance Minister Guido Mantega will not stay on in the cabinet if President Dilma Rousseff wins re-election in October, the president said Monday. Speaking in an interview with Brazilian newspaper Estado de S. Paulo, Ms. Rousseff said that Minister Mantega had requested to step down from the post at the end of the current…
Former Petrobras Director Cites Government Allies In Bribe Scheme
by BCR Staff •
A bribe scheme at Brazil’s state-controlled oil company Petrobras may have involved more than 30 top allies in Brazil’s governing political coalition, according to information from former Petrobras supply director Paulo Roberto Costa that has emerged in local press reports. A weekend report by Brazilian news magazine “Veja” said Mr. Costa cited at least 3…
IPCA Inflation Rises 0.25% in August, Tops Target Ceiling
by BCR Staff •
Brazil’s IPCA consumer price index accelerated 0.25 percent in August, pushed by strong energy price increases during the period, the IBGE statistics institute reported. The surge in inflation put 12-month inflation at 6.51%, just above the country’s 6.5% target ceiling, The IBGE said that in addition to energy prices, housing, transportation, education and health care costs also…
BRF Agrees To Sell Dairy Unit To Lactalis For $800 Mln
by BCR Staff •
Brazilian food company BRF signed an agreement with Lactalis subsidiary Parmalat on the sale of its dairy unit for $800 million, the company said in documents filed with the CVM securities exchange. The deal, if approved by Brazilian anti-trust regulator Cade, would involve 11 dairy facilities operated in the states of Pernambuco, Paraná, Minas Gerais, Mato Grosso…
