Political Risk: Uncertainty

October 2006 | Risk Summary

The uncertainty surrounding the Brazilian presidential election has led us to revise our short-term political risk rating downwards. The rating reflects, in part, the smoothness of political succession and the capability of policy-making. Given that a second round victory on October 29 for either President Inacio Lula da Silva or Geraldo Alckmin, would be accompanied by a weaker mandate for either candidate going forward, our S-T political rating dropped to 69.0 in October from 71.0 in the previous month - bringing it to its lowest level since the last presidential election, in October 2002. Should Lula be re-elected, we are

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