On Sep. 17, 2004, Standard&Poor's Ratings Services raised its long-term foreign currency sovereign credit rating on the Federative Republic of Brazil to 'BB-' from 'B+'. The upgrade reflects marked improvement in Brazil's external liquidity position and improved fiscal dynamics amid strong macroeconomic policy management. Standard&Poor's also revised its outlook on the rating to stable from positive. At the same time, Standard&Poor's affirmed its 'BB' long-term local and 'B' short-term sovereign credit ratings on the republic. The stable outlook on the local currency ratings remains unchanged. Brazil's ratings are constrained by: A large general government debt burden that, despite ongoing improvement, continues to be vulnerable to interest- and exchange-rate movements. Net general government debt is
