São Paulo – The credit rating agency Fitch upgraded the rate given to the city of São Paulo to BBB- in the global scale. The new level gives São Paulo’s capital the “investment grade”, which shows that there’s a low risk of São Paulo failing to honor commitments.
According to information released by São Paulo City Hall this Thursday (12th) and published by Agência Brasil, São Paulo’s ratings upgrade comes after the renegotiation of the debts with the federal government. The debts, according to city government, are “comfortably” below the limits established by the Fiscal Responsibility Law.
Fitch points out the strength of São Paulo’s economy as a differential factor of the city. To receive an “investment grade” makes it easier to attract investments and the granting of loans to the city. The São Paulo ratings in Fitch’s scale is now the same as the one given to the federal government, which is the highest considering all the of country’s institutions.
*Translated by Sérgio Kakitani
