August 14, 2017 / 5:38 PM / a year ago

Fitch says Brazil's revised deficit targets not enough for downgrade

SAO PAULO, Aug 14 (Reuters) - A decision by the Brazilian government to raise a key budget deficit target for this year and next would not, by itself, lead Fitch Ratings to downgrade the country’s sovereign rating, an executive at the credit ratings agency said.

“The change to the fiscal target is not good news, but once again demonstrates why the Brazilian rating carries a negative outlook,” Rafael Guedes, Fitch’s managing director for Brazil, told Reuters on Friday. Fitch currently has a “BB” rating on Brazil, with a “negative” outlook.

Brazil plans to revise its full-year budget deficit targets, before interest payments, to 159 billion reais ($50 billion) for 2017 and 2018, compared with 139 billion reais and 129 billion reais currently, sources told Reuters.

$1 = 3.1821 Brazilian reais Reporting by Aluisio Alves, writing by Bruno Federowski, editing by G Crosse

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