Fitch: Myslenice view to negative

Fitch Ratings said it revised the outlook on the Polish Municipality of Myslenice's national long-term rating to negative from stable, and affirmed the rating at BBB(pol).

The outlook revision reflects the deterioration in Myslenice's operating performance, strong pressure on operating expenditure, growing debt and weakening debt coverage ratios, Fitch said.

The affirmation reflects Myslenice's favorable location, which is supportive to its tax base and economic development, efficiency in gaining European Union capital grants and that Myslenice's companies are almost debt free, the agency said.

Failure to restore the operating balance to previous levels by 2012 could trigger a downgrade if debt grows as projected by Myslenice, the agency said.

Myslenice also faces strong pressure on operating expenditure, Fitch added.

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