UPDATE 1-Moody's puts Brazil rating on review for upgrade

(Adds comment, background)

NEW YORK, July 6 (Reuters) - Moody's Investors Service on Monday put Brazil's foreign and local currency credit ratings on review for possible upgrade, citing the economy's resilience to economic shocks from the global financial crisis.

"As a result of a negative turn of events in the international arena, Brazil has experienced the equivalent of a severe stress test of major proportions in the past several months," Mauro Leos, sovereign credit analyst, said in a statement.

Moody's has Brazil's foreign currency credit rating at "Ba1", one notch below investment grade status. In May 2008, both Standard & Poor's and Fitch Ratings gave Brazil investment grade status by lifting their ratings to "BBB minus", one notch above Moody's.

Resilience to the shocks created by the global financial crisis, Moody's said, is a characteristic that is integral to an investment-grade credit profile.

Moody's said that despite expectations for negative gross domestic product growth and deteriorating fiscal accounts vis-a-vis prior years, the economy's overall performance exceeded initial expectations "relative to a number of other countries with similar or higher sovereign ratings."

The rating review will focus, in particular, on the fiscal outlook and the conditions that will be required "to assure sustainable growth," Moody's statement said.

"The review will also examine the authorities' commitment and ability to implement actions required to restrain fiscal deficits and further reduce debt ratios in the coming years," said Moody's Leos.

Brazil's benchmark Bovespa stock index .BVSP fell 0.97 percent on Monday. (Reporting by Daniel Bases; Editing by Dan Grebler)