Fitch Ratings on Tuesday affirmed Rio de Janeiro city's long-term issuer default rating (IDR) at BB with a "negative" outlook in line with the ratings assigned to Brazil.
Fitch also downgraded Rio's national long-term rating from AA+ to AA, with a "stable" outlook. The recession Brazil is going through has not yet translated into a poor fiscal performance for Rio city, which can be partially explained by the fact that the city host large events such as the Olympic Games in August, said the agency.
Rio city managed to fare much better than Rio state, whose IDRs were rated C by Fitch.
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