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Jan 28 (The following statement was released by the rating agency)
Fitch Ratings says that the new debt limit for Polish local and regional governments (LRGs) with effect from 2014 may lead to cutbacks in capital expenditure or newer forms of financing, particularly for LRGs with weak operating performance and if asset sales prove to be difficult. In a comment published today, Fitch says that it expects some LRGs to transfer investments to their PSEs, or finance projects through public-private partnerships or revenue bond programmes to comply with the debt limit.
Fitch will assess the LRGsâ€™ management capabilities and monitor financial models used to tackle the new debt limit.
The comment entitled "Investments of Polish Subnationals and New Debt Limit" is available at www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings' Report: Investments of Polish Subnationals and New Debt Limit