Fitch Affirms Malopolska at 'A-'; Outlook Stable

Fri Feb 7, 2014 11:35am EST

WARSAW/LONDON, February 07 (Fitch) Fitch Ratings has affirmed the Region of Malopolska's Long-term foreign currency Issuer Default Rating (IDR) at 'A-', Long-term local currency IDR at 'A' and the National Long-term rating at 'AA+(pol)'. All Outlooks are Stable. KEY RATING DRIVERS The affirmation reflects Fitch's expectation that Malopolska will maintain its good operating and budgetary performance, securing healthy debt service and debt coverage ratios in 2014-2015. The ratings reflect the region's strategic management, projected direct debt stabilisation in 2014-2015 and satisfactory liquidity. The ratings also take into account the indirect risk stemming from the healthcare sector, which the region may have to provide with financial support in the medium term. Fitch expects Malopolska's operating performance to remain solid in 2014-2015 with the operating margin at about 13%. This would correspond to an average PLN100m of operating balance, which should comfortably exceed annual debt servicing 3x. This will derive from Malopolska's declared willingness to keep operating expenditure growth under control and to accumulate its own resources for investments to be co-financed with EU grants in the 2014-2020 EU programming period.International Local and Regional Governments Rating CriteriaAdditional Disclosure Solicitation StatusALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.