Brazil was downgraded by Fitch in mid December, following S&P decision in summer. This is second agency to downgrade Brazil to below investment grade.

Moody's will follow and also that additional downgrades will take place through the coming three months. These should drive USD/BRL in Q1 next year. 

Main reason behind these ratings is lack of resolve to stabilize fiscal dynamics. The government is supposed to reach an agreement on 2016 fiscal targets. It appears now likely that it will go with primary fiscal balance with over optimistic growth forecasts for next year.

The main difference between Brazil now and Greece in 2010 is that Brazil can monetize. In other words, unlike Greece, Brazil can print its own currency to service its local debt. 

"This could very well be one of the solutions to improve the fiscal outlook. Higher inflation could reduce as much as a third of the domestic debt market, which is not linked to inflation and has reasonably long-dated tenors', says RBC Capital Markets.