This report supplements our research update "Brazil Outlook Revised To Negative; 'BBB/A-2' Foreign Currency Ratings Affirmed," published on June 6, 2013. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. The ratings on the Federative Republic of Brazil reflect its well-established political institutions, diversified economy, manageable levels of net external debt, and broad political commitment to policies that maintain economic stability. The ratings also incorporate its relatively large government debt and refinancing needs. Moreover, they reflect the country's substantial demand for investment to improve its physical infrastructure, as well as structural impediments
