Rio de Janeiro receives AAA credit rating upgrade from Fitch

Fitch Ratings has upgraded the long-term national credit rating of Rio de Janeiro from AA+ to AAA, the highest investment grade on the national scale. The agency cited consistent improvements in the city's fiscal management, robust liquidity indicators, and solid operating margins.

As part of the upgrade, the Individual Credit Profile (PCI) for the municipality was raised from BB to BB+, indicating a medium-to-low risk level with a stable outlook. Fitch expects the city's debt to decrease gradually, as amortization payments are projected to exceed new borrowing.

Mayor Eduardo Cavaliere attributed the achievement to rigorous budget monitoring and planning implemented since 2021. The agency noted that while Rio's revenue adjustability remains weak due to a limited taxpayer base, its payback index is superior to that of São Paulo, contributing to its improved credit profile.