Brazil's economic growth decelerated sharply in 2012, primarily because of a decline in investment. In our view, the overall economic policy framework in Brazil will continue to seek higher sustainable growth rates through balanced macroeconomic management and efforts to address infrastructure and other shortfalls. We are affirming our 'BBB' long-term foreign currency sovereign credit rating and 'A-' long-term local currency rating on Brazil. The outlook is stable, reflecting policymakers' commitment to a prudent economic framework, as well as the difficulties associated with reaching a higher level of sustainable GDP growth. On Dec. 18, 2012, Standard&Poor's Ratings Services affirmed its 'BBB' long-term foreign currency sovereign credit rating and its 'A-' long-term local currency rating on the Federative Republic of
