The ratings on the Federative Republic of Brazil are constrained by: A high government debt burden with significant vulnerability to interest- and exchange-rate movements. General government debt is projected at 80% of GDP in 2002-2003, and debt net of government deposits at 70% of GDP. Interest on the debt is also very high, projected to be at least 9% of GDP in 2002, or 28% of revenue. Progress made over the last three years on maturity lengthening has come under pressure since 2001; debt management operations this year have shortened the average tenor on publicly offered domestic debt to 21 months. An external position that is vulnerable to shifts in investor confidence. External debt net of liquid assets is projected
