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TEXT-S&P affirms City Of Krakow 'A-' rating; outlook stable
November 23, 2012 / 2:21 PM / 5 years ago

TEXT-S&P affirms City Of Krakow 'A-' rating; outlook stable

(The following statement was released by the rating agency)

Nov 23 -

Overview

-- Krakow, Poland’s second-largest city, continues to achieve a strong budgetary performance, which we believe will continue in 2012-2015.

-- The city benefits from what we consider to be its prudent financial planning and a strong budgetary performance, reflecting its wealthy, service-sector-focused economy.

-- We are therefore affirming our ‘A-’ long-term rating on the City of Krakow.

-- The stable outlook reflects our view that the city will be able to maintain its strong budgetary performance, mitigating its currently weak liquidity position.

Rating Action

On Nov. 23, 2012, Standard & Poor’s Ratings Services affirmed its ‘A-’ long-term issuer credit rating on Krakow, Poland’s second-largest city. The outlook is stable.

Rationale

The rating on the City of Krakow reflects our view that the city benefits from a strong budgetary performance that will likely persist in 2012-2015, in line with the city’s prudent long-term financial planning and based on its wealthy economy, which is focused on the service sector. The city’s weak liquidity, as well as its limited financial flexibility and debt-raising capacity, constrain the rating.

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