NEW YORK (Standard&Poor's) Nov. 22, 2006--Standard&Poor's Ratings Services said today that it revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard&Poor's also affirmed its 'BB' long-term foreign, 'BB+' long-term local, and 'B' short-term currency sovereign credit ratings on Brazil, and revised its outlook on its 'brAA+' national scale credit rating on Brazil to positive. "The positive outlook reflects the continued decline in Brazil's fiscal and external vulnerabilities through another electoral cycle and the expectation that President Luiz Inácio Lula da Silva aims to progressively reduce fiscal inflexibility during his second term," said Standard&Poor's credit analyst Lisa Schineller. Given its continuing and exceptional balance-of-payments
