On May 16, 2007, Standard&Poor's Ratings Services raised its long-term sovereign credit rating on the Federative Republic of Brazil one notch, to 'BB+' from 'BB', and its long-term local currency credit rating by two notches, to 'BBB' from 'BB+'. Standard&Poor's also raised its short-term local currency sovereign credit rating on Brazil to 'A-3' from 'B' and affirmed its 'B' short-term foreign currency rating. The outlook on the long-term ratings remains positive. The national scale credit rating on the republic was raised to 'brAAA' from 'brAA+', and the outlook on this rating is stable. Standard&Poor´s also raised its transfer and convertibility assessment on Brazil to ´BBB´ from ´BBB-´. The upgrades reflect the continued decline in
