NEW YORK, Dec 16 (IFR) - Brazil’s sovereign bonds and credit default swaps widened by around 30bp Wednesday after Fitch stripped the sovereign of its investment-grade rating and lowered the credit to BB+.
Brazil’s US dollar bonds were 2.5 lower at the long end of the curve and about 1.5 points lower at the belly after the move, according to a sovereign bond trader in New York.
Its 2025 notes traded down to a mid-price of 83.25, while the 2045s were quoted at 67.5.
The country’s five-year CDS mirrored that move, widening by 33bp to a mid-price of 487bp.
S&P lowered Brazil to a junk rating of BB+ in September, while Moody’s initiated a review for a downgrade last week. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)