Moody's could cut Brazil rating outlook if economy disappoints

SAO PAULO Mon Jan 6, 2014 11:49am EST

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SAO PAULO Jan 6 (Reuters) - Moody's Investors Service could cut Brazil's rating outlook later this year if economic growth disappoints in the first half of 2014, the firm's senior credit analyst, Mauro Leos, told Reuters on Monday.

If the Brazilian economy performs as expected, however, Moody's will wait for the policies of an incoming government that will be elected later this year to decide on the future of the country's rating, which at "Baa2" stands only two notches into investment grade.

Moody's base scenario for Brazil in 2014 includes gross domestic product growth of 2 percent and a primary budget surplus of 2 percent as well.

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A tourist takes a plunge as she swims at Ngapali Beach, a popular tourist site, in the Thandwe township of the Rakhine state, October 6, 2013. Picture taken October 6, 2013. REUTERS/Soe Zeya Tun (MYANMAR - Tags: SOCIETY) - RTR3FOI0

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