On Dec. 11, 2003, Standard&Poor's revised its outlook on its long-term foreign currency sovereign credit ratings on the Federative Republic of Brazil to positive from stable. 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 on the long-term local currency rating was affirmed. The positive outlook on the long-term foreign currency rating reflects reduced external vulnerability underpinned by ongoing marked structural improvement in Brazil's trade balance. Broad-based growth in exports and market diversification suggest that the 2003 current account surplus, following years of high deficits, is also a result of structural improvements and not just cyclical factors. Exports as
