(The following statement was released by the rating agency)
Nov 23 -
-- 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.
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.
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.