Minas Gerais' widening fiscal deficits in 2015 prompted us to downgrade the Brazilian state following the negative rating action on the sovereign on Feb. 17, 2016. We expect Minas Gerais' fiscal deficit to be above 10% of operating revenue for the next three years. Likewise, the state's liquidity position in relation to its financial obligations deteriorated in 2015, and we expect it to remain weak in 2016. We're affirming our 'BB-' global scale and 'brA' national scale ratings on the state. The negative outlook reflects our view that Brazil's institutional framework is weakening and Minas Gerais' very limited ability to cut its operating costs, which will continue to pressure its ratings. On April 8, 2016, Standard&Poor's Ratings Services
