S&P upgrades Prague

Standard & Poor's said it raised its long- and short-term issuer credit ratings on the City of Prague to A/A-1 from A-/A-2 and removed the ratings from CreditWatch with positive implications, where they were placed on Oct. 2.

The outlook is stable.

The agency said the upgrade is based on the city's consistently improving financial performance, the executive's strong commitment to stabilize debt and economic growth prospects in the Czech Republic compounded by the overall positive outcome of public finance reforms.

The ratings on Prague reflect its wealthy and attractive economy, solid and improving financial performances on the back of growing revenues and its well-contained debt burden, S&P said.

These factors are partially offset by the city's limited revenue flexibility, high infrastructure requirements and potential pressures from non-self-supporting entities, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.