Minas Gerais is likely to post fiscal deficits averaging 4% of total revenue in 2017 and 2018, and its finances to recover moderately in 2019. Severe spending constraints remain, capital expenditure (capex) levels have decreased sharply, and risks stemming from unfunded pension liabilities are rising. We're affirming our 'B-' global scale and 'brB-' national scale ratings on the state of Minas Gerais. The outlook remains negative, reflecting the state's fiscal woes, which in turn pressure its capacity and willingness to repay debt. On April 7, 2017, S&P Global Ratings affirmed its 'B-' foreign and local currency issuer credit ratings on the state of Minas Gerais. We also affirmed our 'brB-' national scale rating on the state. The outlook on both
