According to our methodology, the Brazilian state of Minas Gerais will continue to default on debt it owes to multilateral lending agencies during 2020. We're affirming our 'SD' ratings on the state. The state is aiming to join a Fiscal Consolidation Regime, but given its very narrow financial flexibility, very high debt, and weak liquidity, it can tackle its fiscal woes only over the long term. On Dec. 5, 2019, S&P Global Ratings affirmed its global scale and national scale ratings on the state of Minas Gerais at 'SD'. The ratings on Minas Gerais reflect our opinion that it will continue to selectively default on its debt obligations, given its current fiscal and liquidity weaknesses. Most of the debt on
