Brazil raised to Investment Grade by Standard & Poor’s

Investment Grade is a rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such as Standard & Poor's, use different designations consisting of upper- and lower-case letters 'A' and 'B' to identify a bond's credit quality rating. 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ('BB', 'B', 'CCC', etc.) are considered low credit quality, and are commonly referred to as "junk bonds".

S&P increased Brazil's long-term foreign currency debt rating to BBB- from BB+ after Latin America's biggest economy grew at the fastest pace since 2004 last year and foreign direct investment climbed to a record $34.6 billion. Brazil, once the world's largest emerging-market debtor, became a net foreign creditor for the first time in January as rising demand for the nation's metals, sugar and soybeans fueled exports.

The new rate will allow the increase of foreign investment and the economy growth since many International Funds are only able to invest in Invest Grade countries.