Brazil's ratings are constrained by: A high fiscal debt burden. The general government interest payments burden is very high, projected near 10% of GDP in 2001, or about 30% of revenue. The projected increases in these ratios since early 2001 reflect the structural vulnerability of domestic debt: its sensitivity to interest- and exchange-rate movements. The decline in rollover risk since 1999 is an important improvement, but the debt is still relatively short term. Reported gross general government debt of just over 70% of GDP in 2001-2002 excludes some off-budget obligations (or "fiscal skeletons"). External financial vulnerability. Brazil's gross financing requirements of 300% of reserves in 2001-2002 remain among the highest of rated sovereigns, as does external debt net of liquid
