Brazil's Finance Ministry said that the Standard & Poor's credit rating agency acknowledged the government's actions to strengthen economic growth and improve the country's fiscal conditions in the coming years, despite the agency's decision to downgrade the Brazilian sovereign credit rating from 'BB' to 'BB-' with a stable outlook.
The Brazilian government says that S&P confirmed the government's position regarding the necessity and urgency of the pension reform approval and the postponement of the adjustment and increase of the social security contribution of public servants for the consolidation of the public accounts.
S&P also mentions the public spending limit, the labor reform, the tax recovery program, the reopening of the oil and gas sector, the reformulation of BNDES credit policies and the new Long-Term Tax (TLP) and the current monetary policy stance as credit-positive factors for Brazil, said the government.
The Brazilian government affirmed that "it remains committed to fiscal consolidation, which must progress with the reform agenda being discussed in the National Congress, and with the improvement of productivity and resumption of growth."
"We always count on the support and approval of the necessary measures for the country by the National Congress, and we are sure that it will continue to work in favor of fundamental reforms and fiscal adjustment for Brazil," said the Ministry in the statement.