Brazil proposes new fiscal package, Korea upgraded by S&P – BBH

FXStreet (Delhi) – Research Team at BBH, note that the Brazil has proposed a new fiscal package worth BRL56 bln after the S&P downgrade while S&P upgraded Korea one notch to AA- with a stable outlook.

Key Quotes

“Brazil: Many of the spending cuts are cosmetic, via delayed hiring or delayed pay increases. On the other hand, much of the extra planned revenue is based on the CPMF financial transactions tax, which the lower house already rejected a couple of weeks ago. Indeed, the head of the lower house has already said that new CPMF approval is unlikely.”

“Korea: This was not a big surprise, as S&P move puts it equal to Moody's at Aa3 and Fitch at AA-. Our own sovereign rating model rates Korea at AA- too and so further upgrades are seen as unlikely for now.”
For more information, read our latest forex news.