Fitch lowers six Brazilian subnationals

Fitch Ratings said it downgraded the states of Sao Paulo, Santa Catarina and Parana's issuer default rating to BB from BB+.

Fitch also said it downgraded the ratings for the cities of Sao Paulo and Rio de Janeiro to BB from BB+.

The agency also said it downgraded the issuer default ratings for the state of Rio de Janeiro to B+ from BB.

The outlooks remain negative.

The actions follow the recent downgrade of Brazil's ratings to BB from BB+, Fitch said.

Considering the features of the Brazilian institutional framework, Fitch said it does not believe any subnational entity to be rated higher than the sovereign.

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