Dec 11 (Reuters) - S&P Global Ratings on Wednesday revised the outlook on Brazil to positive from stable, citing the government’s continued implementation of measures to reduce its fiscal deficit.
"The approval of social security reform and expected progress on fiscal and growth measures, along with moderate growth driven by stronger domestic demand, could improve Brazil's fiscal position over the medium term," the agency said in a statement here
In October, Brazil’s Senate approved the pension reform aiming to save the Treasury around 800 billion reais ($190.64 billion) over the next decade. Economists have said the controversial cuts to social security spending are crucial to closing a fiscal deficit that cost Brazil its investment-grade credit rating.
Performance of the country’s economy in the next two years shall be key to maintaining political support for advancing other necessary reforms through Brazil’s Congress, the agency noted.
The ratings agency also affirmed its ‘BB-/B’ long- and short-term foreign and local currency sovereign credit ratings for Brazil. ($1 = 4.1964 reais) (Reporting by Shivani Singh; Editing by Shailesh Kuber)