The largest South American economy is considered the region’s most vulnerable by economists in June's ECR risk survey, amid an EM bond and equity sell-off.

Economists saw rising levels of country risk among Asian sovereigns in June as investors fled emerging market debt and equity markets, after the US Federal Reserve announced it will unwind its policy of quantitative easing (QE).

China’s banking sector has emerged as the principal source of sovereign risk, reversing a decade-long trend, say analysts.

The decision by Standard and Poor’s (S&P) to lower Brazil’s BBB credit outlook to negative sends a warning signal to the government but should not materialise in a downgrade, claim analysts

High debt levels and declining economic outlook continue to affect region’s risk profile.

Caribbean island receives new IMF loan to avoid default.

Government inflexibility might intensify the unrest, claim analysts.