Standard & Poor's (S&P) has downgraded Brazil's credit rating to junk, sparking a sell-off in markets that are closely linked with the Brazilian markets.
The rating agency had warned a few months ago on a rating cut, but, the cut in the rating has been swift.
It will be interesting to see what other rating agencies do as Fitch has an investment grade rating on the country.
The downward revision of the Brazil ratings could see a sharp sell-off in the stock markets in Brazil in the next few days. The downgrading of a large size economy like Brazil is not good news for global markets at a time when Chinese growth worries have sparked fresh global concerns on growth.