Brazil downgrade risks investment, planned IPOs, BM&FBovespa CEO says
SAO PAULO, Sept 10 (Reuters) - Standard and Poor's decision to downgrade Brazil's sovereign ratings to junk status could trigger an exit of long-term capital needed to bolster investment and shelve a number of planned initial public offerings, the top executive at Brazil's sole listed exchange told Reuters on Thursday.
The Brazilian government did not have a clear understanding that the loss of investment grade ratings could lead to a rising cost of capital for the nation's companies and make it harder for them to create jobs, said Edemir Pinto, chief executive officer of BM&FBovespa SA, in a phone interview. (Reporting by Aluísio Alves; Writing by Guillermo Parra-Bernal; Editing by Chris Reese)
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