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Moody's rating agency has downgraded Brazil's government outlook from "positive" to "stable" and expects that interest payments on Brazilian government debt will increase. Moody's states that the change in outlook reflects "reduced credit risk from deteriorating debt affordability, slower progress in addressing expenditure rigidity, and establishing credibility around fiscal policy despite adherence to fundamental balance targets." Brazil's actual GDP growth remains strong, but rising inflation and inflation expectations have led the central bank to tighten monetary policy. Moody's states that due to the sensitivity of Brazil's government debt structure to interest rate changes, interest payments will significantly increase, resulting in overall fiscal deficits and debt accumulation higher than previously expected. Meanwhile, Moody's also confirms Brazil's long-term local and foreign currency issuer ratings as well as the senior unsecured bond rating at Ba1.