Fitch lowers Fomento do Parana

Fitch Ratings said it revised Agencia de Fomento do Parana’s outlook to negative from stable.

Fitch also said it downgraded the company’s long-term national rating to AA (bra) from AA+ (bra).

The actions follow similar rating actions taken on its main controlling shareholder, State of Parana, the agency said.

The agency also affirmed its long-term foreign- and local-currency issuer default rating at BBB-, short-term foreign- and local-currency issuer default ratings at F3 and national short-term rating at F1+ (bra).

The downgrade of the national rating of Parana to was due to the state’s deteriorated fiscal performance, mostly explained by lower-than-expected tax revenues in 2014, Fitch said.

Agencia de Fomento do Parana’s ratings are equal to those of Parana as it is the state’s development fund administrator, the agency said.

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