Fitch rates Chorzow BB+

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of BB+ and national long-term rating of A-(pol) to the Polish city of Chorzow.

The outlook is stable.

The ratings reflect the small size of the city’s budget, which makes the city more exposed to negative economic shocks compared with its peers, Fitch said.

The ratings also consider an expected sharp increase in direct debt that will lead to a deterioration of debt-payback ratio, the agency said.

Despite debt growth, Fitch said it expects debt service will not be put at risk in the medium term.

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