Fitch downgrades Plock

Fitch Ratings said it downgraded the Polish city of Plock's long-term foreign- and local-currency ratings to BBB from BBB+ and national long-term rating to A+(pol) from AA-(pol).

The outlook is stable.

Fitch also downgraded Plock's PLN 80 million senior bonds long-term local-currency rating to BBB from BBB+ and national long-term rating to A+(pol) from AA-(pol).

The downgrade reflects the deterioration in the city's operating results, which is expected to be about 7% over the medium term, down from a 15% average over 2007 to 2010, according to the agency.

The ratings consider the city's wealthy tax base, albeit dependent on companies from the petrochemical sector, limited debt financing needs and relatively low contingent liabilities in result of the city's and its companies' revised down investment plans, the agency said.

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