BUSINESS

Fitch confirms Bucharest’s ‘BBB minus’ rating with a stable outlook


Fitch Ratings has confirmed the Romanian City of Bucharest’s long-term foreign currency rating at ‘BBB-’ and its long-term debts in local currency rating at ‚BBB’, both presenting a stable outlook, Agerpres informs. The short-term rating was confirmed at ‘F3’. The ratings reflect the economic and financial profile of the Bucharest City, which is much above the national average, its consistent operational performance and the moderated debt level. Moreover, it reflects the volatile cycle of the taxes, the need for investments and risks related to refinancing. The stable outlook reflects the Fitch agency’s expectations regarding the continuation of the solid budgetary performance and the moderated debt level. Fitch estimated that the Bucharest’ debt will remain unchanged in 2013 and 2014, with the GDP following to improve in 2013, although only moderately. Romania’s economy was up 0.7 per cent in 2012, with Fitch expecting a higher advance in 2013, of 1.2 percent, but still below the 1.6 per cent average of 2007-2011.

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