On Nov. 8, 2005, Standard&Poor's Ratings Services revised its outlooks on its long-term local and foreign currency sovereign credit ratings on the Federative Republic of Brazil to positive from stable. The positive outlooks reflect the trend improvement in external indicators and prospects for continued consolidation of fiscal debt dynamics, including the composition of locally issued debt. Standard&Poor's also affirmed its 'BB-' long-term foreign, 'BB' long-term local, and 'B' short-term foreign and local currency sovereign credit ratings on the republic. The ratings on the Federative Republic of Brazil reflect a consistent macroeconomic framework that includes a floating exchange-rate regime and inflation and fiscal consolidation strategies. This policy framework has bolstered the sovereign's fiscal performance. Higher primary (noninterest)
