Telebras (TBH) & Brazil Message Board

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Strategies & Market Trends : Telebras (TBH) & Brazil

TBH 1.070

+8.1%

Nov 5 3:59 PM EST

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To: Steve Fancy who wrote (7472)	9/3/1998 10:22:00 PM
From: Steve Fancy	Read Replies (2) of 22640

Brazil's Malan: Moody's Downgrade Based On Inadequate Info Dow Jones Newswires WASHINGTON -- Brazilian Finance Minister Pedro Malan on Thursday sharply criticized Moody's Investors Service for downgrading Brazil, saying that the rating agency doesn't know how to evaluate sovereign risk. "I find surprising that this has been done on the day of this meeting, with markets open, and even more surprising because Moody's didn't do like other agencies and go to the Central Bank and go to the Finance Ministry and try to exchange ideas with us. They didn't do any of that," Malan said as he left a meeting between Latin American policy makers and the International Monetary Fund. Moody's earlier Thursday downgraded Brazil's country ceiling for foreign currency bonds and notes to B2 and the country ceiling for foreign currency bank deposits to Caa1. Malan said that with the decision to cut Brazil's ratings - and other Moody's action against Venezuela, Argentina and Mexico - showed the agency doesn't evaluation sovereign risk properly. "I believe that this shows that some agencies should invest much more than they have up until now in evaluating sovereign risk. Evaluating the risk of a company is very different from evaluating the risk of sovereign countries," he said. He said he believed that Moody's was attempting to protect its reputation and anticipate a larger crisis in Latin America - which it failed to do in Asia.

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