Moody's: Prievidza to stable

Moody's Investors Service said it changed the outlook on the City of Prievidza's Aa3.sk national scale issuer rating to stable from negative.

The outlook change reflects the significant turn-around in Prievidza's fiscal management following the election of a new administration, which enjoys strong political support in the city's assembly, Moody's said.

After elections in late 2010, the city's newly appointed administration responded to the city's challenging financial position and high debt levels by introducing significant cost-cutting measures to operating and capital budgets and restricting all new debt, the agency said.

Moody's said it expects a gradual recovery in Prievidza's operating performance and debt-repayment capacity, as well as decrease in debt levels in the next two years.

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