This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations Strong fiscal results due to high oil royalty inflows. Sound fiscal policies results in a strong financial profile. Substantial liquidity and low debt burden thanks to sizable cash flow. A buoyant economic profile. A challenging framework for Brazilian local and regional governments (LRGs). The oil industry's volatility continues to pose risks to the city's creditworthiness. Sizable oil royalties, combined with responsible fiscal policies, have bolstered the city's liquidity position and reduced its debt burden. Due to a significant expansion in oil output in its territorial waters, the city is experiencing rapid economic growth, surpassing the national average pace and GDP per capita. Oil activity is
