Brazil hit with negative outlook by S&P "Continued slow economic growth, weaker fiscal and external fundamentals, and some loss in the credibility of economic policy given ambiguous policy signals could diminish Brazil's ability to manage an external shock," S&P said. Delays in implementing policies to boost private investment, especially in infrastructure, could contribute to low GDP growth this year and next, thereby raising the risk of further fiscal slippage and a resulting rise in the government's debt burden. The rating agency revised its outlook on its long-term ratings for Brazil to negative from stable and affirmed its BBB long-term and A2 short-term ratings. S&P said the negative outlook reflects the at least one-in-three probability that a rising government debt burden and erosion of macroeconomic stability could lead to a downgrade of Brazil over the next two years. "Brazil is likely to suffer its third year of modest economic growth, with GDP likely to expand only 2.5pc in 2013, after growing 2.7pc in 2011 and 0.9pc in 2012," said Sebastian Briozzo, S&P's credit analyst. S&P said it could change the outlook back to stable if the government adopted more consistent policies that generate greater private-sector confidence and higher investment. This would boost the country's trend rate of GDP growth, giving the government more fiscal and monetary flexibility, it said.