Moody's Investors Service has chosen Brazil as the first local capital market in which it will employ its "national scale" ratings. Traditionally a main player in cross-border transactions, this will be the agency's first attempt in the local markets.

There are several reasons for Moody's choice of Brazil as the debut site for its national scale ratings. "Brazil stood out because it is a big country with lots of potential issuers," explained David Moniz, managing director for Latin America and Canada at Moody's. "We think that its domestic capital market will continue to develop and, in the course of discussions with Brazilian investors, it became clear that credit ratings are going to become more and more important as a tools for doing risk allocations."

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