This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations High oil royalty inflows support strong budgetary results. Prudent policies to remain under new government. Solid fiscal buffers reflect substantial liquidity and a low debt burden. Exposure to oil industry's volatility continues to pose risks. A challenging framework for Brazilian local and regional governments (LRGs). Expansion of tools to develop and diversify the economic profile in the medium term. Sizable oil royalties, combined with responsible fiscal policies, have supported a build-up of fiscal buffers. The city?s strong liquidity position provides headroom to increase its debt burden. Following a significant expansion in oil output in its territory, the city has been growing rapidly, above the national
