Upgrade in Brazil credit rating boosts property market
Saturday, May 17, 2008
NuBricks.com has reported that overseas property investors are interested at the Brazilian property market following the news that the country's credit rating has been upgraded. Standards and Poor's rating service upgraded Brazil's credit rating to triple-B-minus to the investment grade.
The recent change from junk bond status to investment grade will persuade more investors into the Brazilian credit market and Brazil may be set to attract further interest from overseas property buyers during the next few months. The credit rating allows the government to raise finances on much more competitive terms and there is great potential for capital growth. A better credit rating reduces deal costs for the Government with the spin-off of stimulating the wider economy.
The impact of improved credit rating on the Brazilian property market is the increased demand for residential property in Brazil's principal cities and the Brazilian property companies would have the opportunity to raise finance on better terms which will have a great impact upon the overall cost of its properties. Lower property prices and increasing demand in the property market are sure to be noted by local and overseas investors.
Recently Brazil was praised by the Times for offering a stable economy, established political system and an expanding housing market.
The recent change from junk bond status to investment grade will persuade more investors into the Brazilian credit market and Brazil may be set to attract further interest from overseas property buyers during the next few months. The credit rating allows the government to raise finances on much more competitive terms and there is great potential for capital growth. A better credit rating reduces deal costs for the Government with the spin-off of stimulating the wider economy.
The impact of improved credit rating on the Brazilian property market is the increased demand for residential property in Brazil's principal cities and the Brazilian property companies would have the opportunity to raise finance on better terms which will have a great impact upon the overall cost of its properties. Lower property prices and increasing demand in the property market are sure to be noted by local and overseas investors.
Recently Brazil was praised by the Times for offering a stable economy, established political system and an expanding housing market.
Labels: Latest-News, Market-Trends, Mortgage
