FRANKFURT/BARCELONA/LONDON, January 31 (Fitch) Fitch Ratings has
Romanian City of Bucharestâ€™s Long-term foreign currency Issuer
(IDR) at â€˜BBB-â€™, its Long-term local currency IDR at
â€˜BBBâ€™ and its Short-term
foreign currency IDR at â€˜F3â€™. The Outlooks on the Long-term
IDRs are Stable.
The senior unsecured rating of the cityâ€™s outstanding EUR500m
XS0222425471) has also been affirmed at â€˜BBB-â€™.
KEY RATING DRIVERS
The affirmation reflects Bucharestâ€™s capital status, including
economic and administrative centre of Romania. The ratings also
above-national average wealth levels, its strong operating
performance and its
sound debt coverage. They further reflect the cityâ€™s high
through a bond maturing in 2015, uncertainties over its
and its exposure to the euro exchange rate.
The Stable Outlook reflects Fitchâ€™s expectations that
Bucharest will extend its
sound budgetary performance, including healthy debt ratios since
it has no plans
to increase debt in 2014. Fitch assumes real GDP growth to
continue in 2014.
Bucharest faces large refinancing risk from its EUR500m eurobond
maturing on 22
June 2015. The city plans to borrow bank loans to refinance the
repayment.International Local and Regional Governments Rating CriteriaAdditional Disclosure
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