The Brazilian state of Minas Gerais (SD/--/-- on global and Brazil national scales) continues to face financial distress and default on its loans from multilateral lending institutions. Minas Gerais continues to benefit from a favorable legal injunction that's blocking debt service and counter-guarantee payments to the central government. No evidence of debt service payments to multilateral lending institutions occurring within five business days. Therefore, the state remains in default. Beyond the legal injunction, the state hasn't implemented enough fiscal measures to significantly improve its creditworthiness. Extraordinary support of the federal government will provide some relief to Minas Gerais' fiscal accounts, but debt is still set to rise. Debt service suspensions and extraordinary support from the central government will result in
