...The ratings on Minas Gerais are supported by its "satisfactory" financial management, "moderate" contingent liabilities, "average" budgetary flexibility and a "weak," yet broadly diversified, economy. The ratings are also supported by the state's "strong" budgetary performance (despite weakening in 2014), and we expect performance will remain strong for the next two years. The ratings are constrained by the state's high debt levels and "less than adequate" liquidity position. Minas Gerais is among the most important economic hubs in Brazil. Its broad, well-diversified economy generates the third-largest share of national GDP (estimated at 9.3%), and its GDP per capita, estimated at $9,495 in 2014, was slightly lower than the national average of $11,568. Between 2006 and 2011, the state's GDP growth rate was slightly lower than the national growth rate, at 3.0% and 3.2%, respectively. In 2013, the state's economy grew only 0.5% while Brazil's grew 2.3%. Given that Brazil's economy slowed...
