The Brazilian state of Minas Gerais' 2014 fiscal results approached our base-case scenario for the year; however, capital expenses slightly declined to 8.7% from 9.7% a year earlier due to disbursement delays. The fiscal deficit was mostly funded by savings and capital revenues We are affirming our 'BBB-' global scale and 'brAAA' national scale ratings on the state. The stable outlook reflects our expectation that the state will maintain its average fiscal performance amid Brazil's challenging economy, and as the state struggles to contain operating expenses while revenues decline. On April 10, 2015, Standard&Poor's Ratings Services affirmed its 'BBB-' global scale and 'brAAA' national scale issuer credit ratings on the State of Minas Gerais. The outlook remains stable.
