A consistent macroeconomic framework: fiscal, monetary, and floating exchange-rate regime; Maturing fiscal institutions and policy track record; and Locally issued government debt is less vulnerable to exchange-rate fluctuations and enjoys captive local market. A large net general government debt burden, vulnerable to interest-rate movements; A still-vulnerable external position, given a high stock of external debt and an export base of about 20% of GDP; and Structural economic and institutional impediments that limit investment and growth. The ratings on the Federative Republic of Brazil reflect a consistent macroeconomic framework that includes a floating exchange-rate regime as well as inflation and fiscal consolidation strategies. This policy framework has bolstered the sovereign's fiscal performance. Higher primary (noninterest) balances have supported a decline in
