Moody's ups Sau Paulo & Minas Gerais

Moody's Investors Service said it upgraded the global scale issuer ratings of the State of Sao Paulo by one notch to Baa2 from Baa3.

The outlook was revised to positive.

At the same time, Moody's upgraded the global scale issuer rating of the State of Minas Gerais to Baa3 from Ba1.

The outlook remains stable.

In addition, Moody's revised the outlook on the global scale issuer ratings of the city of Rio de Janeiro to positive from stable.

Moody's said Sao Paulo's upgrade reflects a solid track record of balanced financial performance underpinned by conservative fiscal policies.

Minas Gerais' upgrade reflects a sustained track record of positive gross operating balances and modest cash financing surpluses, underpinned by strong revenue growth and a proven capacity to match expenditures to revenue growth, the agency said.

Finally, the outlook change to positive from stable in the global scale rating of the City of Rio de Janeiro reflects Moody's assessment on the beneficial impact that the positive trends seen in the Brazilian economy exert over this entity, the agency added.

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