Fitch: Wroclaw outlook negative

Fitch Ratings said it changed the outlook on the Polish city of Wroclaw's A- long-term foreign- and local-currency ratings to negative from stable and assigned a national long-term rating at AA-(pol) with stable outlook.

The change in the city's outlook to negative reflects deteriorating operating performance, pressure on capital expenditure that may lead to further financing requirements and expected increase in indirect debt due to investments by municipal companies, Fitch said.

The ratings also factor in above national economic wealth indicators and financial flexibility to increase local taxes and cut operating spending, which should help protect debt coverage ratios, the agency said.

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