International ratings agency Moody's has raised Brazil’s country risk rating from “Ba1” to “Baa3.” As a result, the country is now in the top bracket of the “investment grade” category, meaning it is considered a safe home for investments. The agency analyzed Brazil’s government finances and external credit position, as well as other factors, including political and regulatory issues.

“The upgrade reflects Moodys recognition that the country’s shock absorption capacity, including the authorities’ policy response capability, points to a material improvement in Brazil’s sovereign credit profile,” said Mauro Leos, Moody's regional credit officer for Latin America, in a statement. Leos added that "Evidence of strong economic and financial resilience can be seen in the modest and short-lived contraction in GDP, minimal weakening in the country's international reserve position, moderate deterioration in the government debt indicators and lack of financial stress in the banking system."

According to Henrique Meirelles, president of Brazil’s central bank, the decision by Moody's shows the strength of the country. Finance minister, Guido Mantega, stated that more pension funds will now invest in Brazil following the assessment. “This is recognition of the Brazilian economy’s good management,” said Mantega.

With the announcement from Moody's, the Brazilian economy has now been classified as "investment grade" by all the major international risk assessment agencies.