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04.30.08
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For Coutinho, investment grade is the recognition of the Brazilian economy advancements
BNDES’ President, Luciano Coutinho, considers that the Brazilian upgrade to investment grade represents the recognition by the foreign market of the successful changes the country’s economy has undergone. He also points out that the “virtuous cycle of stable growth” will go
on.
“The investment-grade rating accomplishment is the long-awaited outcome of the structural changes the Brazilian economy has gone through in recent years. Inflation stabilization at international levels, high trade surplus, accumulation of international reserves and, finally, a growing volume of public and private investments gave rise to a new economic growth standard placing the Brazilian economy in the international marketplace”, Coutinho said. “The gross domestic product is growing at a rate of 5% a year, driven by the domestic market and, particularly, by swelling investments”, he
stated.
As BNDES’ President put it, the Brazilian investment-grade achievement at a moment when the international economy is facing huge obstacles reinforces that the Brazilian economy foundations are more and more steadfast. The outstanding performance of the Brazilian foreign debt securities during the crisis were a sign that, for foreign investors, foreign financial problems did not directly affect our
economy.
“As Brazil now goes investment grade, this trend is likely to be stronger, allowing Brazilian companies and banks to enter the foreign market with increasingly competitive costs”, Coutinho
says.
The President considers that this measure will allow greater flow of external financing and new direct investments, spurring the Brazilian economy investment cycle and, consequently, the economic growth. “This will cut down the cost of capital for the financing of public debt and large long-term projects. This way, BNDES is offered new opportunities to provide the funds required to boost investments.”
Coutinho reminds that BNDES, just like other Brazilian companies, already had the investment-grade rating, given by Moodys in October 2006.
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