LONDON, February 25 (Reuters) – The sacking of the head of Brazil’s state-owned energy company Petrobras by the country’s president does not bode well for Latin America’s largest economy, rating agency Fitch said on Thursday, although it would not hurt him immediately. credit score.
“This is not a good sign,” Shelly Shetty, deputy head of Americas Sovereigns Fitch, said in a web broadcast. “It shows Brazil is vulnerable to one step forward and two steps back.”
Brazil’s currency, stocks and bonds fell on Monday after President Jair Bolsonaro moved on Friday evening to topple Petrobras chief Roberto Castello Branco following weeks of clashes over rising fuel prices.
On whether the move could impact BB-Brazil’s credit rating, which is already on a downgrade warning, Shetty said: “We want to get more clarity and are waiting to see how this problem settles.”
“The key to the ranking is the prospect of reform,” he said. (Reporting by Marc Jones Editing by Bill Berkrot)