The fact that Standard & Poor’s (S&P) raised Brazil to investment grade in April is more than a good sign for the Brazilian economy. According to Alan Cardoso, an investment analyst from Banco Prosper, this is an historic moment. In an interview, he explained how the effects of investment grade– a sort of seal of quality - may be beneficial for and important to the Olympic Games bid. The international community will watch with great interest stability indicators as they signify security and peace of mind for investments. Indicators for Brazil's institutional scene, which has undeniably evolved in recent years, are extremely favorable. The implementation of Plano Real (Real Plan) and the introduction of the new currency in the 1990s, were the starting point for the change. The control of inflation allowed companies to develop long-term plans and establish solid corporate strategies. See details below:

What are the main reasons that allowed Brazil to reach the current economy stage and the investment grade ranking?
We should highlight a series of factors, among them macroeconomic stability, the history of political continuity, the operating independence of the Central Bank and the maturity of the stock market. All of this guarantees Brazil a comfortable position and significant growth, even amidst international turbulence.

Where is the starting point of this panorama?
In the implementation of the Real Plan and in the introduction of the new currency, in 1994. Inflation at the time scared international investors and hampered any kind of planning. For nearly 15 years, the indicators have been completely under control.

What does the change announced by Standard & Poor’s represent in practical terms?
It represents the guarantee that the country is capable of paying its sovereign debt, which gives international investors peace of mind. In other words, investors realize that the country is capable of fulfilling commitments, maturity – with the permanence of the economic model –and the development of the economy in a stable environment.

Did Brazil's position in the face of the American crisis have any impact on the agency's decision?
Certainly. We have handled the problems of the United States and its affects on world well. There is no doubt that this is an endurance test for our economy.

Is it possible that the investment grade will help Rio 2016 candidacy?
I am sure it will. Above all, the elevation of the country’s grade is a kind of quality stamp. This assures a solid economy that permits long-term investments made with peace of mind.

Does Brazil’s foreign debt situation contribute to the stability?
Yes. The net external debt became negative with the increase in foreign exchange reserves. This means that Brazil has the funds to make payments, if it wants to. In other words, the assets in foreign currency are enough to pay all the external public debt.

Can we expect changes in Brazil’s economic scene?
We don't think that major changes will occur soon. Investment grade is more of an economic development factor aligned with excellent circumstances in the domestic market and strong demand from the foreign market. The ranking solidifies Brazil;s position as an excellent destination for long-term investments.