NEW YORK (Standard&Poor's) Oct. 7, 2002-- With the conclusion of the first round of presidential elections, Brazil (local currency: BB/Negative/B; foreign currency: B+/Negative/B) moves one step closer to embarking on an important political transition. Independent of the outcome of the elections, the president-elect and his administration will need to manage and ultimately reverse Brazil's worsening fiscal and debt service pressures, which heighten Brazil's vulnerability to changes in investor sentiment. Standard&Poor's will be looking for immediate signals from the president-elect with regard to intended macroeconomic policies. "Positive signals would include the formation of a strong technocratic economic team, the rapid development of an effective economic program (which should serve to lessen short-term financial pressures), and the negotiation
