Brazil’s Credit Rating and the US inflation problem
In 1989 Moody's changed the credit rating of Brazil to BB- unjustly, causing great problems and strife to the Brazilian people and government.
Moody's and S&P, and most Americans, have yet to understand the concept of Real Interest rates, rather than Nominal Interest rates, which is a misleading pricing scheme. It misleads people into assuming that they are receiving much more "interest" than they really are. In Brazil that would be a against the law.
During the last twenty years, Brazil always had the ability to pay the Real Interest rate of its obligations, plus an extra for amortization. It never justified the rating of "questionable ability… Read the rest of Brazil's Credit Rating and the US inflation problem