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Moody's: Improving conditions for Brazil's corporates, but political uncertainty adds pressure

Credit conditions for companies are showing signs of improvement as Brazil (Ba2 stable) emerges from its deepest economic recession in history, but economic uncertainty persists ahead of the October 2018 presidential elections, Moody's Investors Service says in a new report. Brazil's economy will grow again in 2018, following its 1% expansion in 2017 after two years of recession, but Brazil's central bank consensus points to 1.5% growth in 2018 down from an earlier 2.6% forecast followed by 2.5% growth in 2019. Brazil's national oil company, Petrobras (Ba2 stable) will stay focused on reducing debt and strengthening its operating performance in order to improve its cash generation and credit metrics.