S&P lowers Bucharest outlook to negative

Standard & Poor's said it revised its outlook on the Romanian City of Bucharest to negative from stable, following a similar action on the sovereign.

At the same time, the BB+ long-term issuer credit rating was affirmed, the agency said, adding that it revised the outlook as a result of its downgrade of the sovereign.

The rating reflects the city's high debt burden, need to enhance both debt and liquidity management, low financial flexibility, and obstacles in implementing key infrastructure projects, S&P said, noting that these constraints are mitigated by Bucharest's strategic position as Romania's capital, its consistently sound operating balances, and strong revenue growth.

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