Moody's: Outlook for Brazil's banks negative as political uncertainties Linger - Reuters

On Monday, Moody's Investors Service announced that it changed its outlook for Brazil's banking system from stable to negative amid political uncertainties.

Key quotes (via Reuters):

• While banks are emerging from Brazil's recession with manageable asset risks, Moody's does not anticipate material reduction in delinquencies‍
• The negative outlook for Brazil's banking system also reflects the negative outlook on brazil's ba2 sovereign rating

At the moment, the USD/BRL pair is at 3,1843, up 0.9% on the day.