The Brazilian state of Goias is readying a receivable investment fund (FIDC) backed by past due sales taxes, a fledgling asset class that has been tainted by a downgrade review from Moody's Investors Service on a separate transaction.

The senior tranche on the Goias deal is small, at R$9.7 million ($4.4 million), and the rating low, at B(bra)' from the national scale of Fitch Ratings. The term is also a short 14 months. The collateral consists of delinquent sales taxes that companies owe the state and have renegotiated into an installment plan. Goias is an inland state and the home of Brasilia, the capital.

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