The City of Rio de Janeiro received on Tuesday afternoon, October 4th, the confirmation of the “BB” international rating with a negative outlook from Fitch, the international ratings agency. The credit rating is equalized with that given by the agency to the sovereign, which represents the city’s highest possible assessment. The City of Rio de Janeiro is seven levels above the State Government, as it currently faces a severe financial crisis. On a national scale, however, the City was assessed at AA (bra), considering the criterion redefined by Fitch.
In its report, Fitch highlights the strength of the municipality throughout the long period of economic recession that Brazil is going through, without any compromise to its fiscal performance. Rio’s investment rate, at nearly 20%, was also a positive contributor to the maintenance of its rating, while other entities with the same classification invest an average of 10.1%. Another aspect taken into account by Fitch was the current scenario of the Special Pension Fund of the City of Rio de Janeiro (FUNPREVI), which is far superior to that of most Brazilian states. Fitch concludes that the city has an adequate liquidity with no cause for concern.
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