Earlier today, Moody's downgraded Brazil's issuer and bond ratings to Ba2 and changed the outlook to negative.
"The negative outlook reflects the view that risks are skewed toward an even slower consolidation and recovery, or further shocks emerging," analysts said.
Additionally, the government's debt will likely exceed 80% of GDP within three years, Moody's noted.
This is the third ratings agency to slash Brazil's credit rating, according to Barron's.com.
Since the Baa3 rating with a stable outlook was assigned to Brazil's credit rating in August 2015, the country's credit metrics have "deteriorated materially," the firm said.
Based in Brazil, Itaú Unibanco Holding S.A. provides a range of financial products and services to individuals and corporate clients in Brazil and internationally.