Fitch lowers AgeRio

Fitch Ratings said it downgraded Agencia de Fomento do Estado do Rio de Janeiro SA's (AgeRio) long-term local- and foreign-currency issuer default ratings to B- from B+ and long-term national ratings to BB-(bra) from A-(bra).

Fitch also said it removed the Rating Watch negative assigned to AgeRio's ratings in May and assigned a stable outlook.

The downgrades mirror the recent action on AgeRio's parent, the State of Rio de Janeiro, the agency said.

Fitch said it views AgeRio as strategically important for Rio de Janeiro as it acts as the state's development arm and implements its economic development policies.

In 2015, AgeRio's overall profitability, fell but remained adequate as a solid increase in fee-income broadly offset a large increase in loan-impairment charges, the agency said.

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