...Fitch Ratings has affirmed the Municipality of Spo Paulo's (Spo Paulo) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at `BB' and its Short-Term Foreign and Local Currency IDRs at `B'. Fitch has also affirmed Spo Paulo's National Long-Term Rating at `AAA(bra)' and its National Short-Term Rating at `F1+(bra)'. In addition, Fitch has affirmed Spo Paulo's Standalone Credit Profile (SCP) at `bbb+'. Rating Outlook is Stable. Spo Paulo has demonstrated significant fiscal autonomy over the historical period, with a limited dependence on intergovernmental transfers, which accounted for about one-quarter of operating revenue, while tax collections consistently outpaced inflation. The entity's low debt level is expected to remain comfortably accommodated, while the main challenge will be to keep operating expenditure growth in line with operating revenue growth. Spo Paulo's IDRs are capped by Brazil's (BB/Stable) sovereign IDR. Under Fitch Ratings' criteria, Brazilian local and...
