Moody's rates Gaziantep B1

Moody's Investors Service said it assigned the Metropolitan Municipality of Gaziantep a Baa2.tr issuer rating on the Turkey national scale and B1 local- and foreign-currency issuer ratings on the global scale.

The outlook is stable.

The ratings consider the positive albeit uneven operating margins and limited revenue flexibility available to municipalities, Moody's said.

The ratings also reflect high debt burden and potential financing requirements for investments with lingering uncertainties for the financial and operating environment, the agency said.

"From a long-term perspective, Moody's identifies the substantial investment needs for infrastructure as a factor exerting potential pressure on municipal finances, as revenues are not expected to match the growing trend of the past few years going forward. In this regard, borrowing regulations in place mitigate the risk that the municipality will resort extensively to financial leeway to finance investments in the near future," Francesco Soldi, a Moody's analyst, said in a written statement.

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