Upgrade in Brazil's credit rating to stimulate property market
Upgrade in Brazil's credit rating to stimulate property market
Brazil could become a more attractive choice for foreign property investors following the news that the country's credit rating has been upgraded, NuBricks.com reports. The independent property portal explains that the shift up in status is expected to increase Brazil's economic prosperity which, it claims, should lead to an improved property market.
The country now has a credit rating of triple-B minus after being upgraded by Standard and Poor's rating system, which NuBricks.com states, should attract more investors to the Brazilian credit market and allow the country's government to raise finances on increasingly competitive terms.
Speculating on the impact the decision will have on Brazil's property market, the portal comments that it will be two-fold; firstly increasing economic activity, in turn generating demand for housing in Brazil's main cities; secondly allowing the country's property companies to "raise finance on better terms for both residential, infrastructure and resort projects...which will have a material impact upon the overall cost (and sale price) of its properties."
The website remarks that the new credit rating for Brazil comes after similar changes in other South American countries, including
Mexico, Peru and Chile, and constitutes "the next stage in the dramatic recovery of South America's regional economic status." By stimulating the wider economy, the collective changes in credit ratings across the continent should open it up to investors, NuBricks.com concludes: "Lower costs of building and greater demand in the property market are the Holy Grail of property investment" and are "sure to be noted by local and overseas investors."
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14 May 2008
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