Moody's: Istanbul fiscally sound

In its annual report on the Metropolitan Municipality of Istanbul, Moody's Investors Service said the city's Ba3 issuer rating with stable outlook is based on its continuing sound fiscal management, reflected by strong gross operating margins over time and good financial flexibility.

The rating also reflects the moderate - albeit growing - debt burden and potential financing requirements for large capital investments, the agency said. The stable outlook reflects Moody's expectations that the city will be able to match larger expenditure with higher levels of resources granted by Law 5216 over the longer term and will manage the execution of its large-scale capital investment program by constraining its recourse to debt.

Istanbul's economy has been dynamic and steadily evolving, helping to drive national economic growth, the agency said.

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