On May 23, 2011, Standard&Poor's Ratings Services revised its foreign-currency outlook on Brazil to positive but maintained the stable local-currency outlook. Based on our updated methodology and assumptions for rating sovereign governments, which we published on June 30, 2011, we have now revised the outlook on the local-currency rating on Brazil to positive from stable. We believe that Brazil's exchange rate regime and capital market development will continue to underpin a two-notch differential between the foreign- and local-currency ratings. On Aug. 25, 2011, Standard&Poor's Ratings Services revised its local-currency outlook on the Federative Republic of Brazil to positive from stable. At the same time, Standard&Poor's affirmed its 'BBB-/A-3' foreign-currency and 'BBB+/A-2' local-currency ratings on
