Moody’s lowers Fomento Parana view to negative

Moody's Investors Service said it affirmed Agencia de Fomento do Parana SA’s (Fomento Parana) Ba3 long-term global local-currency issuer rating and changed the outlook to negative from stable.

The company’s short-term global local-currency issuer rating of not-prime, Brazilian national scale issuer ratings of A1.br and BR-1 and Ba3 baseline credit assessment were not affected.

The outlook revision follows a similar outlook change to negative from stable on the long-term issuer rating of the state of Parana, Moody’s said.

Fomento Parana’s ratings no longer benefits from uplift related to affiliate support because the rating of the state of Parana is at the same level as the entity’s standalone baseline credit assessment of Ba3, the agency said.

The ratings consider the company’s unsupported credit risk profile, which is underpinned by its small regional franchise providing medium- to long-term financing to municipalities in Parana and a strategic profile fully aligned to the state government’s development plans, Moody’s said.

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