Research Update: Italian City of Milan Outlook Revised To Negative On Weaker Performance; 'A+' Rating Affirmed Sep 08
- ID: 1723312
- September 2008
- Region: Italy
- Standard & Poors
On Sept. 15, 2008, Standard & Poor's Ratings Services revised its outlook on the Italian City of Milan to negative from stable. At the same time, the 'A+' long-term issuer credit rating was affirmed. The rating reflects Milan's good liquidity position, still-strong fiscal flexibility, and low contingent liabilities thanks to a profitable portfolio of shareholdings. These factors are offset by tightened budgetary performances and a high debt burden, which could continue to increase on the back of an ambitious capital program. The city's robust tax base and low tax rates give it significant revenue-raising flexibility by national and international standards. Despite the national abolition of property tax on principal residences, Milan's tax flexibility remains solid, at about 15% of operating...
Companies mentioned in this report are:
- Milan (City of)
Action: Outlook: Negative
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Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases. SHOW LESS READ MORE >