Fitch gives Parana AA+(bra)

Fitch Ratings said it has assigned the following initial ratings for the State of Parana: national long-term rating AA+(bra), stable outlook; national short-term rating F1+(bra); foreign currency long-term rating BBB-, stable outlook; foreign currency short-term rating F3; local currency long-term rating BBB-, stable outlook; and local currency short-term rating F3.

The ratings assigned to the State of Parana are underpinned by its modest economic importance as the fifth-largest state in Brazil, representing 5.8% GDP, and its balanced proprietary pension system, the agency said.

Also supporting the rating is the financial flexibility resulting from the fact that Parana's most important creditor is the federal government, accounting for 69.4% of total debt in 2012, Fitch noted.

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