Fitch assigns Medellin currency BBB-, BBB

Fitch Ratings said it assigned the following initial ratings for the Municipality of Medellin, Colombia: foreign currency long-term BBB- and local currency long-term BBB.

The outlook is stable.

The ratings of Medellin incorporate the city's relevant role in the Colombian economy, the municipality's sound fiscal policies, strong socio-economic indicators, high operating margins, significant cash flow from public sector entities as well as the country's thorough institutional framework, the agency noted.

However, the ratings also incorporate low coverage of pension liabilities, higher-than-national average unemployment rates and a prospective debt-burden which is much higher than historical levels, the agency said.

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