May 5 (Reuters) - Fitch:
* Fitch downgrades Brazil to 'BB'; outlook negative
* Issue ratings on Brazil's senior unsecured foreign- and local-currency bonds are also downgraded to 'BB' from 'BB+'
* Brazil's public finances remain under pressure and repeated changes to fiscal targets have undermined fiscal credibility
* Brazil negative outlook reflects continued uncertainty surrounding progress that can be made to improve outlook for growth,public finances
* General government debt burden is expected to reach nearly 80% of GDP by 2017
* Forecasts that growth will reach -3.8% in 2016 and 0.5% in 2017
* Ratings reflects deeper-than-anticipated economic contraction
* Country ceiling is downgraded to 'BB+' from 'BBB-' and short-term foreign-currency IDR is affirmed at 'B'
* Ratings reflects failure of government to stabilize outlook for public finances
* Brazil continues to confront a very challenging political environment
* Forecasts general government deficit to average over 8% of GDP in 2016-17, down from over 10% in 2015
* Forecasts that Brazil will continue to incur primary deficits during 2016-17
* Current account deficit will average just over 1% of GDP in 2016-17 compared to nearly 4% average in 2014-15 Source text for Eikon: (Bengaluru Newsroom)