In a move that was not unexpected, the agency on Monday lowered the country's foreign currency sovereign credit rating to BBB- from BBB, with a stable outlook.
S&P also downgraded state oil player Petrobras, a move the company characterised as maintaining an investment-grade rating.
"The downgrade reflects the combination of fiscal slippage, the prospect that fiscal execution will remain weak amid subdued growth in the coming years, a constrained ability to adjust policy ahead of the October presidential elections, and some weakening in Brazil's external accounts," S&P said in a statement.
The
