Fitch Ratings Affirms Bucharest's 'BBB-' Rating with Stable Outlook

On April 12, 2024, Fitch Ratings reaffirmed the City of Bucharest's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-', maintaining a Stable Outlook.

Key Factors Influencing the Rating:

Moderately Low Risk Profile: Fitch assesses Bucharest's risk profile as moderately low compared to international peers, indicating a relatively stable capacity to manage debt obligations.

Financial Management: The affirmation reflects Bucharest's consistent financial management practices, which have contributed to maintaining its current rating.

Economic Environment: The rating considers the broader economic context of Romania, including fiscal policies and economic performance, which influence the city's financial stability.

Implications for Stakeholders:

This affirmation signals to investors and stakeholders that Bucharest maintains a stable financial position, with a consistent ability to meet its debt obligations. The 'BBB-' rating places Bucharest at the lower end of investment-grade ratings, suggesting moderate credit risk.

Conclusion:

Fitch Ratings' decision to affirm Bucharest's 'BBB-' rating with a Stable Outlook reflects the city's prudent financial management and moderately low-risk profile. Stakeholders can view this as an indication of Bucharest's ongoing commitment to maintaining financial stability amid broader economic challenges.