Well-established political institutions. Diversified sources of economic growth over the medium term based on both the export of natural resources and expanding domestic demand. Prudent macroeconomic policies that should allow Brazil to sustain economic growth while limiting macroeconomic imbalances. Relatively large government debt and refinancing needs that still require a strong commitment to fiscal responsibility. Substantial demand for infrastructure improvements that will require increasing levels of public-sector investment. Structural impediments that contribute to low investment ratios, constraining potential growth. Standard&Poor's Ratings Services' ratings on the Federative Republic of Brazil are based on the country's strengthening prospects for steady, long-term GDP growth as well as modest current account and fiscal deficits that should gradually reduce the country's vulnerability to
