Both teams start the weekend three points above the La Liga drop zone and with home advantage on their side, Rico wants to take the opportunity to give themselves breathing space.
"Winning this sort of match can help us reach our goals," he said.
"Playing at home we have to try to win in front of our supporters.
"Against every opponent we play with the idea of doing our best and winning, but Rayo are a direct rival and we must achieve victory."
Although Fabri remains sidelined and Pape Diakhate is at the African Nations Cup, Granada have been boosted by the return of Inigo Lopez and Roberto from injury and Franco Jara from suspension, while Czech defender Daniel Pudil has arrived from Genk this week.
Rivals Rayo would love to strengthen too as they look to pull clear of the drop zone, but club president Raul Martin Presa has warned there are limited funds available to spend this month.
"To reinforce, it must be someone who can come in for minimum cost," he said.
"The club has a good squad now and the important thing is to keep the key players. If there is any possibility of adding something that falls within our parameters for the purpose of helping keep us up, the economic impact will be studied.
"But it must be someone who can help us survive and come in at minimum cost. We need to spend as little as possible. There is no exact figure, but we have to keep the costs low."
But the mood is buoyant after last week's victory over Sevilla, and sporting director Felipe Minambres wants the side to build on that result.
"The fact is that the victory against Sevilla is a great result against a strong opponent and it gives us much optimism," he said.