Fitch affirms MWiK

Fitch Ratings said it affirmed Miejskie Wodociagi i Kanalizacja w Bydgoszczy Sp. zoo's first series PLN 220 million secured revenue bond with a long-term local-currency rating of BBB- and assigned the prospective PLN 380 million second series secured revenue bond an expected long-term local-currency rating of BBB-.

The series was issued under the company's PLN 600 million secured revenue bond program, which is intended to co-fund MWiK's sizable capital expenditure program of PLN 1 billion.

The affirmation reflects a decreased risk of political tension, as a result of the reelection of MWiK's management for a further five-year term, the reshuffle of the supervisory board and improved cooperation with the city, according to the agency.

Secured revenue bond program ratings reflect an expected large increase in tariffs over the next two years, which should cover MWiK's increasing cost basis, the agency said.

Concerned include the delayed implementation of MWiK's capital expenditure program and a substantial increase in total costs, Fitch noted.

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