The long-term foreign and local currency issuer ratings were confirmed at 'BB' with a stable trend, the Canadian agency said in a statement.
"Prospects for policy action to address the fiscal imbalance and increase potential growth are unclear ahead of general elections next month. The most pressing issue facing Brazil's credit profile is the large budget deficit and rising public debt burden," DBRS said.
Brazilians will on October 7 vote for president, state governors and legislators. If presidential and state governor candidates fail to secure more than 50% of the valid votes, a runoff will take place on October 28.
"The constitutional spending cap creates strong incentives to follow through with fiscal consolidation. However, it is unclear whether the next administration will have the willingness and ability to build a congressional coalition large enough to pass the necessary structural reforms," the agency said.
Recent polls show that even the frontrunner among the presidential candidates is far away from the 50% threshold.
BANKS DOING FINE
Despite the country's challenges, DBRS views the scenario for banks as positive.
"Banks remain profitable and well-capitalized, even considering the Basel III requirements. Moreover, in the event of macroeconomic shocks, the banking system appears sufficiently capitalized to digest additional credit losses or manage unexpected financial market volatility, including large swings in the exchange rate, without major disruption," the agency said.