Fitch lowers Parana

Fitch Ratings said it downgraded the Brazilian state of Parana’s national long-term rating to AA(bra) from AA+(bra).

Fitch also said it affirmed Parana’s foreign-currency long-term issuer default rating at BBB- and revised the outlook to negative from stable.

The agency also affirmed its short-term issuer default rating at F3, local-currency long-term issuer default rating at BBB-, local-currency short-term issuer default rating at F3, national long-term rating to AA(bra) from AA+(bra) and national short-term rating at F1+(bra).

The downgrade of the national ratings reflects the state of Parana’s deteriorated fiscal performance, mostly explained by lower-than-expected tax revenues, Fitch said.

Operating margins reached 2.3% in 2014, lower than the 5% initially projected, the agency said.

The negative outlook reflects challenges the state could face in 2015 in adopting measures to curb expenditures and improve revenues to a sustainable level, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.