Brazil's credit assessment is primarily constrained by its low and uneven growth, coupled with weak fiscal metrics, arising from persistent deficits, and reflected by high levels of debt. This weakness is partly offset by a large and diverse economy coupled with the benefits of an upper-middle-income country. Brazil's comfortable external position and the government’s low reliance on external debt also support its credit profile. Going forward, the success of its ongoing reform efforts, particularly the proposed streamlining of its tax system, would be a key enabler to enhance Brazil’s growth potential and address the structural constraints in Brazil’s economy.