Brazil questions criteria of credit rating agencies

RIO DE JANEIRO, June 17 (Xinhua) -- Brazilian Finance Minister Guido Mantega complained on Thursday about the high ratings granted to countries which have yet to overcome the effects of the international financial crisis.

According to Mantega, Brazil has a more stable economic situation than some of those countries, but it rating remains lower.

"The grades do not match the countries. Brazil has a BBB, but should have more. I will not say names, but there is a country with high indebtedness which has an AAA grade, and in my opinion it did not deserve a BB," he said.

Mantega warned that mistaken evaluations paved the way to the international financial crisis, and speculated on whether a different rating system should be created.

"We must create an alternative to the (credit rating) agencies, maybe with a categorization elaborated by the International Monetary Fund (IMF)," he said.

He also praised Brazil's development, estimating a GDP growth of over 6.5 percent for 2010.

"The economy emerged with renewed vigor after the crisis, growing more, and therefore it is clear that a new development cycle has begun," he said.

Mantega assured that the Brazilian economy will not overheat this year, since the fiscal stimuli and tax cuts determined amid the crisis have already been suspended. Additionally, he said that the country is in the right path to a zero nominal deficit, which should be achieved in the next few years.

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