Fitch Ratings affirmed Brazil's long-term foreign currency rating at 'BB' with a negative outlook, the global rating agency announced Friday.
The credit rating of Brazil is constrained by structural weaknesses in its public finances, high government indebtedness, and weak growth prospects, Fitch said.
These weaknesses, however, are counter balanced by the country's economic diversity and 'entrenched' civil institutions, the agency added.
The negative outlook, on the other hand, reflects continued uncertainties about the sustainability of Brazil's economic recovery, Fitch noted.
'A challenging political environment continues to impede progress on the social security reform, which is important for the medium term viability and credibility of the spending cap,' Fitch said in a statement.
'The 2018 election cycle could also detract from reform progress and weigh on economic recovery,' the statement added.
Fitch said it expects Brazil's economy to grow 0.6 percent this year, and accelerate to an average of 2.6 percent during 2018-2019.
By Ovunc Kutlu in New York
Anadolu Agency
energy@aa.com.tr