Brazil's currency and stocks rose early Monday as investors cheered rating agency Standard & Poor's upgrade of the country's sovereign rating late Friday.

The local currency, the real , was 0.1 percent stronger at 2.868 reais, while the benchmark Bovespa index of the Sao Paulo Stock Exchange, was up 1.51 percent at 23,421.8 points.

S&P said the upgrade reflected marked improvement in Brazil's fiscal and trade accounts.

The country is currently running a record budget surplus, excluding interest payments, of more than 4.25 percent of gross domestic product, while the trade surplus this year should hit a record $31 billion.

Both factors ease the ability of Brazil to service its external debt load as it tries to attain investment grade status. The latest upgrade followed one by Moody's about two weeks ago.

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