REFILE-S&P says policy volatility justifies negative outlook for Brazil
(Corrects date in first paragraph)
BRASILIA Feb 18 (Reuters) - Political uncertainties underpin the risk of policy reversals in Brazil, clouding the economic scenario and justifying the negative outlook of the country's rating after a downgrade on Wednesday, Standard & Poor's said on Thursday.
S&P director Lisa Schineller said in a press conference that Brazil's overall budget deficit is likely to remain high as impeachment proceedings against President Dilma Rousseff delay needed policy measures.
S&P downgraded Brazil's credit rating deeper into junk territory to BB from BB+ with a negative outlook, just five months after becoming the first agency to strip the country of its coveted investment grade. (Reporting by Silvio Cascione)
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