SAO PAULO, March 15 (Reuters) - Ratings agency Moody’s Investors Service upgraded on Wednesday the outlook for Brazil’s sovereign rating to “stable” from “negative,” saying Latin America’s largest economy is poised to exit its deepest recession on record.
In a statement, Moody’s Vice President Samar Maziad said a stabler macroeconomic outlook is likely to bolster the government’s reform agenda, supporting Brazil’s “Ba2” rating.
Concerns over potential spillovers from fiscal woes at state-controlled oil company Petróleo Brasileiro SA and at state governments, which had underpinned the negative outlook, have also abated, he added.
Front-month Brazilian real future contracts extended gains following Moody’s decision. Spot markets for the currency and stocks were closed at the time. (Reporting by Bruno Federowski; Editing by Daniel Flynn)