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News: Investment boost for Brazil

Wed, 06 Jun 07

Good news for potential buyers of Brazilian property - the country is set to achieve full investment grade status by the end of next year, according to an industry specialist...

Brazil’s investment market looks to be improving significantly following recent upgrades to its status by ratings agencies Fitch and Standard & Poor (S&P).

Luiz Ribeiro, manager of HSBC GIF Brazil Equity fund, believes this reflects a variety of positive trends in the country.

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."

In the last month both Fitch and S&P raised Brazil’s ratings to BB+, Fitch with regard to foreign and local currency credit and S&P in relation to long-term foreign sovereign credit.

Attaining full investment grade status would be highly significant for those owning property in Brazil. It would open up a number of opportunities and options for large-scale investors, which would in turn create a more favourable economic climate for smaller investors choosing to buy Brazilian property.

Homesgofast recently expressed the view that low prices and improving economic strength make Brazil a great emerging location for property investment.

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