Fitch cuts Mazowieckie

Fitch Ratings said it downgraded the Mazowieckie's long-term foreign-currency rating to BBB+ from A-, long-term local-currency rating to A- from A and national long-term rating to AA(pol) from AAA(pol).

The outlook is stable.

The downgrades reflect the deterioration of the region's operating performance in 2009-2010, which is not expected to materially improve in 2011-2012, and its weak debt ratios, the agency said.

The ratings and stable outlook reflect the region's weak control over its operating expenditure, which is growing faster than operating revenue and is also negatively affected by equalization transfers, as well as high indirect risk from the region's healthcare sector, the agency added.

The ratings are supported by the region's wealthy and developed tax base, Fitch said.

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