(RTTNews) - Standard & Poor's removed sovereign ratings on Brazil from CreditWatch with negative implications after the political landscape somewhat settled.

The ratings were affirmed at 'BB' but with 'negative' outlook.

The agency noted that political landscape is somewhat more settled as President Temer survived a vote-by the Federal Electoral Court (TSE) in June and by Congress in August-related to corruption charges.

S&P said the economy appears to have stabilized despite fluid politics, Congress passed a labor reform in July, and the government remains committed to advancing some pension reform, containing expenditure growth to minimize deviation from its primary fiscal targets.

The negative outlook suggests at least a one-in-three likelihood that the ratings could be lowered over the coming six to nine months.

According to S&P, Congress has a limited window of opportunity to pass controversial legislation before political maneuvering ahead of the 2018 presidential elections picks up by early next year.