Standard & Poor's revises Bucharest rating negatively

Marţi, 28 octombrie 2008, 17:38 English | Business

Standard & Poor's negatively revised the ratings for the city of Bucharest, from "stable" to "negative", as a result of the country rating negative revision, a press release of the agency informs. At the same time, Standard & Poor's confirmed the BB plus rating for long term credits offered to the Romanian capital.

The rating reflects the high level of the debt Bucharest has, the need for improvement in debt and cash flow management, the low financial flexibility and the obstacles in implementing infrastructure projects.

The problems are balanced by the city's strategical position as Capital city, the good operational balances and the string increase of income.

"The city perspective is negative because the country perspective is negative. The ratings for Bucharest will follow the country ratings", the Standard & Poor's release informs.

The rating agency decreased on Monday the country rating for Romania for long-term loans in convertible currencies from BBB minus to BB plus and the rating for short term credits from A-3 to B, with a negative perspective.