NEW YORK (Standard&Poor's) Oct. 2, 2006--The results of the Federative Republic of Brazil's (sovereign credit ratings: foreign, BB/Stable/B; local currency, BB+/Stable/B) Congressional and gubernatorial elections on Oct. 1, 2006, confirm Standard&Poor's expectations that coalition building and astute political articulation will play an important role in successful passage of policy measures over the next four years. Whether President Luiz Inácio Lula da Silva proves able to secure a second term or ex-Governor Geraldo Alckmin engineers a come-from-behind victory, multiparty support will be needed in Congress and by the state governors to move any agenda forward. Under either a Lula or Alckmin presidency, the opposition can impede passage of legislation. Neither presidential candidate looks to command a clear
