May 24, 2017 / 6:14 PM / 3 months ago

BRIEF-Fitch says Brazil state fiscal aid uncertain amid political turmoil

May 24 (Reuters) -

* Fitch says Brazil state fiscal aid uncertain amid political turmoil

* Fitch says expects fiscal performance of Brazilian states and local governments to also improve by a small margin in 2017

* Fitch says do not expect Rio De Janeiro, Minas Gerais and Rio Grande Do Sul to generate enough revenues to cope with operating costs in 2017

* Fitch - "political turmoil" around Brazil's president Michel Temer could damage state credit profiles if it delays emergency federal support for large states

* Fitch on Brazil- federal plan could have a positive near term impact, but political uncertainty will probably slow its implementation

* Fitch on Brazil- the plan's federal credit lines would allow states to pay back-salaries for critical services

* Fitch, on Brazil, says expect macro conditions to improve in 2017, compared to 2016 and 2015, but recovery will be slow

* Fitch on Brazil-delaying proposed pension relief would also be fiscally damaging for states as pension cost increases have expanded their budgetary structural imbalances

* Fitch says forecasts Brazilian economy to grow by 0.7% in 2017 Source text for Eikon:

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