The agency cut Brazil's long-term debt rating one notch to BBB-, its lowest investment-grade, due to mixed policy signals from President Dilma Rousseffs government that had undermined its fiscal credibility and a slow growth outlook for the next two years.
S&P also cut the credit rating of mining company Samarco, which is owned by Vale and BHP Billiton, to BBB- from BBB. The outlook for all three Brazilian companies is stable, the agency said.