LONDON -- Standard&Poor's CreditWire 3/5/96 -- Standard&Poor's assigns its single-`B'-plus rating to the upcoming Yen (Y)30 billion Samurai bond issue of the Federative Republic of Brazil. The outlook on the rating is positive. The rating is based on Brazil's success at stabilizing its economy and the broad-based and deepening popular support for stabilization underpinning this success. The revision of its outlook to positive from stable in December 1995 reflects the enhanced prospects for the passage and implementation of fiscal reforms essential to secure stability medium term. The rating remains constrained, however, by the risk that legislative delays could slow disinflation and weaken the credibility built by the Real Plan, and by Brazil's heavy external debt burden.
