On Aug. 4, 2005, Standard & Poor's Ratings Services raised its long-term foreign and local currency issuer credit ratings on the Latvian capital City of Riga to 'BBB' from 'BBB-'. At the same time, the 'A-3' short-term ratings on Riga were affirmed. The outlook is stable. The upgrade reflects the city's improved financial management and transparency, increased cofinancing of infrastructure projects by the EU, and better financial performance on the back of strong economic growth and cautious budgeting. The ratings continue to be supported by Riga's strong position in the Republic of Latvia's economy (A-/Stable/A-2), its moderate debt burden, and strong intergovernmental control framework. The rating is constrained by low revenue autonomy, the fragility of the political coalition, and pressing...
Companies mentioned in this report are:
- Riga (City of)
- Latvia (Republic of)
Action: Outlook: Stable
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