Rio de Janeiro Confirmed by Fitch as Safest Investment Destination in Brazil
The Fitch ratings agency has recently raised the status for the city of Rio de Janeiro to BBB with a stable perspective (the highest rating in the country), whilst also emphasising the strong position of Brazil as a whole in the face of the international crisis (also reinforced in a recent meeting with President Dilma Rousseff and IMF director-general Christina Lagarde).
The city´s loan from the World Bank in 2010 has assisted in improving Rio´s credibility as a investment destination and reduce some of the high debt and costs previously witnessed (after the amortisation of 20 percent of government debt).
According to the risk analysis agency, the long term rating of Rio could well benefit by the implementation of measures to amplify the city´s pension fund trust (Fundo Especial de Previdência do Município do Rio de Janeiro). The main risks envisaged by Fitch include high operational costs and the increase in debt which both could affect performance and reverse the positive rating improvements.
