S&P downgrades Krakow

Standard & Poor’s said it lowered the long-term issuer credit rating on the city of Krakow to BBB+ from A-.

The outlook is negative.

S&P also said it corrected a previously made error by marking the ratings on Krakow as “solicited.”

As a sovereign rating, the ratings on Krakow are subject to certain publication restrictions, but the agency said it deviated from the planned calendar due to the recent downgrade of the foreign-currency rating on Poland.

The downgrade on Krakow follows the lowering of the long-term foreign-currency sovereign credit rating on Poland to BBB+ from A-.

A local- or regional-government can be rated higher than its sovereign only if S&P considers that it exhibits certain characteristics, the agency said.

S&P said it does not currently consider Krakow to meet those conditions, so it cannot be rated higher than Poland.

Krakow’s stand-alone credit profile is currently assessed at A-, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.