Fitch Downgrades City Of Ostrow Wielkopolski To 'BBB+-POL-'; Outlook Stable.Business Editors LONDON & WARSAW--(BUSINESS WIRE)--June 18, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. , the international rating agency, has downgraded the Polish City of Ostrow Wielkopolski's Long-term National rating to 'BBB+(pol)' from 'A-(pol)' ('A minus(pol)'). The Long-term rating outlook is Stable. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. reflects the deteriorating de·te·ri·o·rate v. de·te·ri·o·rat·ed, de·te·ri·o·rat·ing, de·te·ri·o·rates v.tr. To diminish or impair in quality, character, or value: budgetary performance of the city, its high debt and low financial flexibility and the weakening of socio economic profile. The socio-economic environment of the city is weak and reflects the national trend; increasing unemployment (21%), low foreign investment and relatively high debt, which prohibit pro·hib·it tr.v. pro·hib·it·ed, pro·hib·it·ing, pro·hib·its 1. To forbid by authority: Smoking is prohibited in most theaters. See Synonyms at forbid. 2. the city from applying for EU funds. The municipal government has tried to improve the business environment by establishing the Business Support Centre, which will manage the Loan and Guarantee Fund and assist them in adapting to EU standards. To attract potential investors the city has reduced real estate taxes for employers who create new jobs. However, the effects of these activities are insufficient and can not improve the overall picture of the city. Ostrow Wielkopolski, is situated in the south-east part of Wielkopolska region, close to three big cities (Poznan, Wroclaw and Lodz), which are the capitals of their respective regions. Ostrow is home to around 74,600 inhabitants
The game is based loosely on the concepts from SameGame. and is considered relatively small by Polish standards. Ostrow, as with other Polish cities of this size, is highly sensitive Adj. 1. highly sensitive - readily affected by various agents; "a highly sensitive explosive is easily exploded by a shock"; "a sensitive colloid is readily coagulated" to national economic trends. The budgetary performance of the city is deteriorating. In 1999-2002, operating expenditure grew faster than current revenue, which resulted in a decrease in operating and current balances. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Polish standards, the debt and debt servicing ratios are high. In 2003 the debt servicing to the operating balance ratio will increase to around 90%. The city will have to limit capital expenditure in 2003. Due to the high debt, the city can not apply for EU funds. Fitch will closely monitor developments at Wagon, which is one of the biggest employers in the city, in terms of its impact on the rating of the city. Its failure could negatively impact the already poor socio-economic environment, severely affecting city's budgetary performance. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion