Rio receives top rating from Fitch Ratings after fiscal recovery.

Rio de Janeiro has once again received the highest rating from Fitch Ratings: the agency raised the city's Long-Term National Rating from AA+(bra) to AAA(bra), placing the city back at the highest level of the national credit risk rating scale. The decision recognizes the city's fiscal recovery, highlighting the consistent improvement in public accounts, the robust liquidity position, and the prospect of debt reduction. Fitch also raised Rio's Individual Credit Profile (PCI) from "BB" to "BB+".

– When we took over the City Hall in 2021, we found a very difficult fiscal situation. From day one, the budget was scrutinized meticulously, expense by expense, revenue by revenue, contract by contract. Now, the AAA rating from Fitch is recognition of that work. There are no miracles in public management. There is responsibility, planning, control, and constant monitoring – stated the mayor of Rio, Eduardo Cavaliere.

On Fitch Ratings' national scale, ratings range from C, indicating a high risk of default, to AAA, the highest level of payment capacity. Between these extremes, the rating goes through CCC, B, BB, BBB, A, and AA, reflecting, in ascending order, different levels of financial capacity and credit risk.

According to the agency, the new rating reflects consistent improvements in the municipality's fiscal management in recent years, resulting in solid operating margins and robust liquidity indicators. Fitch expects Rio's debt to gradually decrease in the coming years, with amortizations exceeding the contracting of new loans.

– Fitch assessed the continued soundness of the municipality's fiscal management, practiced over the last five years, and its sustainability for the coming years. The municipality showed that it has managed to completely reverse the agency's assessment, which was still influenced by the lack of liquidity found at the beginning of the administration in 2021. Reaching the highest score on Fitch's national scale today is recognition of consistent work in recovering public accounts and, above all, confirmation that Rio has built a solid foundation to maintain this fiscal balance in the future – analyzes Andrea Senko, Municipal Secretary of Finance.

This achievement is the result of a recovery trajectory that began in 2021. After an initial cycle, between 2009 and 2016, marked by high investments and major urban transformations, Rio went through a period of sharply reduced investment capacity. Between 2017 and 2020, investments represented, on average, only 2,6% of the municipal budget.

In 2021, the City Hall encountered a scenario of serious imbalance: a fiscal deficit of approximately R$ 6 billion, as well as R$ 4,9 billion in outstanding payments, practically depleted funds, and personnel expenses exceeding the legal limit.

From then on, extensive work began to rebuild municipal finances, supported by measures such as the New Fiscal Regime, the Pension Reform, tax simplification, and a real increase in revenue. In the first year alone, cash availability returned to positive territory and Rio recovered its payment capacity, moving from CAPAG C to CAPAG B.

The results of this turnaround are evident in the main indicators. Between 2020 and 2026, the municipal budget increased from R$ 30,5 billion to R$ 53 billion. Tax revenue rose from R$ 5,9 billion to R$ 10,1 billion, while investments returned to 10,5% of the budget, after an average of only 2,6% recorded between 2017 and 2020.

According to a study released by Fitch, Rio de Janeiro has moderate control over expense growth, with solid margins. Between 2021 and 2025, the city recorded an average operating margin of 11,6%, reaching 11,8% in 2025. Fitch also highlights that Rio is up-to-date with its payroll and has no payment delays to suppliers. During the same period, the real growth in operating revenues exceeded the increase in expenses.

Another point highlighted is the debt situation. In December 2025, the consolidated net debt corresponded to 35,8% of the net current revenue, well below the 120% limit stipulated by the Fiscal Responsibility Law.

The assessment also highlights important characteristics of Rio de Janeiro's economy and finances. Rio exhibits relative fiscal autonomy, with low dependence on transfers from the federal government compared to other entities, as well as limited exposure to more volatile revenues, such as oil and gas royalties. In 2025, tax revenues represented 42,3% of the municipality's operating revenues.

In the international arena, the Municipality remains classified as BB, with a stable outlook, since, according to Fitch's methodology, the international rating of Brazilian local governments is limited by Brazil's sovereign rating. Therefore, this classification does not represent a specific limitation of Rio de Janeiro's accounts, but a consequence of the ceiling established by the country's credit rating.

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August 16th, 2026

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