The ax of Standard and Poor's crashes on Brazil. In fact, the rating agency downgraded the Brazilian debt securities to junk level, bringing the rating on the Brazilian debt to BB+ with negative outlook (which leaves the door open to possible new downgrades) from the previous BBB-, the last level at which a security can still be considered reliable for an investor.
The Brazilian debt thus enters the "speculative grade". A blow to the government led by Dilma Rousseff, overwhelmed by political scandals of all kinds, and by the myth of the BRICS, the emerging countries driving the world economy.
But if Russia and China continue to float, despite their difficulties, Brazil is sinking: the relegation to "speculative grade" comes after seven years in which the country's debt was deemed reliable and at the end of August, at the end of a new quarter with the minus sign next to the GDP item, Brazil officially entered recession.
The blow suffered by the South American country, however, risks hitting many Italian companies as well. According to Mediobanca Securities analysts, the Italian companies that could be most affected by Brazil's rejection are, in order, Pirelli, Telecom Italia, FCA, CNH, Saipem, Sogefi, Atlantia, Prysmian, Enel, Luxottica and Campari.
The first effects of the Brazilian blow have already been felt in Business Square, where in mid-morning Cnh and Campari stand out among the companies in the greatest decline in the Italian price list, which in the same minutes travels in negative territory.
