On April 29, 2003, Standard&Poor's revised its outlook on its long-term local and foreign currency sovereign credit ratings on the Federative Republic of Brazil to stable from negative. Standard&Poor's also affirmed its 'BB' long-term local, 'B+' long-term foreign, and 'B' short-term local and foreign currency sovereign credit ratings on the republic. The stable outlook reflects recent progress and prospects for a further strengthening of Brazil's fiscal position. President Luiz Inácio Lula da Silva and his administration have thus far demonstrated a commitment to stabilize the stock of government debt. First, the primary (noninterest) surplus target for the nonfinancial public sector for 2003 was raised to a new target of 4.25% of GDP, up from the budgeted
