Here is the latest statement from Barclays:
“Our forecast now assumes that Brazil get downgraded by one notch at the beginning of 2014. And unless there is a credible and material change in the course of fiscal policy, further fiscal deterioration is almost unavoidable, which, along with the weak economic performance, should trigger a negative ratings move (S&P recently placed Brazil on negative watch for these same reasons).”
Brazil’s sovereign credit is ranked BBB by Standard & Poor’s. Barclays Capital sees it heading to BBB- next year. The good news is (if there is any), is that it’ll still be investment grade.