S&P rates Rio

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The Standard & Poor's (S&P) classification agency, has granted Rio de Janeiro, stage for the 2016 Olympics Games, with an investment grade BBB– credit rating, the same level as Brazil, citing a "diverse and strong economy" that will benefit from the development of oil reserves. This decision opens the doors to foreign investors.

Rio governor SÉrgio Cabral, celebrated the result of the agency's analysis and said "the grant of the investment level means a international seal of quality for current management. "Because of Brazilian legislation and the "the strong management which prevails in the State in the last three years", S&P believes that with a strong and diversified economy, the state will maintain its credit quality in the average term. The state of Rio de Janeiro currently has an estimated GDP per capita at about 25% above Brazil's average. Apart from this, the S&P evaluates that, the development of new petroleum fields will continue to give support to the economy on average terms. The agency also remembers that Rio has a low dependency on federal transfers, which gives more nimbleness for the solution of "fiscal challenges". Rio plans to sell international bonds "at the right moment, " finance secretary Joaquim Levy said.

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