Moody’s Investors Service on Tuesday warned it may cut Brazil’s credit rating in the next couple of years as the country’s economy slows, piling pressure on the winner of October’s presidential elections to change course on economic policy.
Ahead of the Oct. 5 vote, debate about whether to tighten fiscal policy is a hot campaign topic. President Dilma Rousseff, who has indicated she won’t radically alter policies if re-elected, faces a strong challenge from environmentalist Marina Silva, who is keen to cut government spending.
Rousseff did not directly respond to Moody’s, but the Finance Ministry said the ratings agency based its decision on temporary factors that hurt growth in the first half of the year without taking into account a possible recovery in the next few months.
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