The Brazilian state of Minas Gerais is benefiting from substantial debt relief from the central government after joining the national Fiscal Recovery Regime (FRR) thanks to a favorable temporary judicial ruling. The local legislature has yet to approve the administration's proposed fiscal plan and related laws, which would improve the state's very weak fiscal profile and provide legal certainty to debt relief. We affirmed our 'CCC+' global scale and 'brBB' national scale ratings on Minas Gerais. The stable outlook reflects our view that the state will continue to enjoy debt relief, preventing a new default despite its structurally weak fiscal position. On Oct. 30, 2023, S&P Global Ratings affirmed its long-term 'CCC+' foreign and local currency issuer credit ratings on
