On June 6, 2013, Standard&Poor's Ratings Services revised its outlook on the Federative Republic of Brazil to negative from stable. As we stated at that time, the negative outlook reflects our view that there is at least a one-in-three likelihood that Brazil's (BBB/Negative/A-2 foreign-currency sovereign credit rating) rising government debt burden and eroding macroeconomic stability could lead to a downgrade over the next two years. We also stated that continued slow economic growth, weaker fiscal and external fundamentals, and some loss in the credibility of economic policy given ambiguous policy signals could diminish Brazil's ability to manage an external shock. In addition, delays in implementing policies to boost private investment--especially in infrastructure--could contribute to low GDP growth this
