The investment rating granted by rating firm Standard & Poor's shows Brazil's economic stability and will increase the flow of foreign investment, Brazilian Central Bank President Henrique Meirelles said Wednesday.
"It certainly is a very significant moment for Brazil because (the investment rating) came at a moment of uncertainty and instability in the world's economy," Meirelles said in a press conference in Sao Paulo.
The investment grade is expected to attract more foreign investors to the Brazilian market, especially funds that are not allowed to invest in markets that have not been given the rating, he said.
Besides, Brazilian companies are expected to get foreign loans at lower costs, as the rating ensures that investment in the country's economy is not as risky as before, Meirelles said.
Following the announcement of the rating, the Ibovespa, the index of the Sao Paulo Stock Exchange (Bovespa), topped at over 68,000 points Wednesday and closed at 67,868 points, up 6.3 percent, the highest rise since October 2002. Over 9 billion reais (5.4 billion U.S. dollars) were traded at the stock exchange during the day.
Source: Xinhua
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