International rating agency Standard&Poor’s has confirmed its long-term rating of BB+ for the Romanian capital, which it says has stable forecasts due to a sustainable economic development and an engagement of the city hall to lower debt, according to an S&P press release.
But the rating for Bucharest reflects the pretty high level of debt, the low financial flexibility and the need for more transparency, according to S&P analyst Felix Ejgel. He says these minuses are compensated by the strategic position of the city, its capital city status and its constant income increase.
Still, Bucharest mayor Adriean Videau believes the level of debt is low and that S&P should have consulted local authorities more before setting the rating.
He told Hotnews.ro that the international agency planned to lower the rating but that he managed to make it clear that such a move would have been an error.