Moody's upgrades Brazil credit rating to Ba1

BRASILIA/SAO PAULO, Oct 1 (Reuters) - Ratings agency Moody's upgraded Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2 on Tuesday, maintaining a positive outlook for the country.

The move leaves Latin America's largest economy just one step away from regaining an investment grade rating.

A superior rating reflects enhanced creditworthiness, allowing nations to issue debt at reduced interest rates.

"The upgrade reflects material credit improvements which we expect to continue, including a more robust growth performance than previously assessed and a growing track record of economic and fiscal reforms that lend resilience to the credit profile," said Moody's.

However, the agency stressed that the credibility of Brazil's fiscal framework is still moderate, as reflected in its relatively high cost of debt.

The agency in May revised Brazil's outlook to positive. (Reporting by Marcela Ayres in Brasilia and Andre Romani in Sao Paulo; Editing by Leslie Adler)