NEW YORK (Standard&Poor's) July 2, 2002--Standard&Poor's today lowered its long-term local and foreign currency sovereign credit ratings on the Federative Republic of Brazil, reflecting the rising public debt that further pressures the fiscal position. Standard&Poor's lowered its long-term local currency sovereign credit rating on the republic to double-'B' from double-'B'-plus, and its long-term foreign currency sovereign credit rating to single-'B'-plus from double-'B'-minus. The single-'B' short-term ratings on the sovereign were affirmed and the outlook on the ratings remains negative. "Ever-tighter fiscal management is essential to maintain debt to GDP at current levels, given the worsening domestic debt profile and heightened market concerns over political uncertainties," said Sovereign Analyst Lisa Schineller. "Standard&Poor's believes
