Fitch affirms MWiK bonds

Fitch Ratings said it affirmed Miejskie Wodociagi i Kanalizacja w Bydgoszczy Sp zoo's Poland zloty 220 million first series and Poland zloty 310 million second series secured revenue bonds' long-term local-currency rating at BBB-.

Both series fall under the company's secured revenue bond program of Poland zloty 600 million, which is intended to co-fund MWiK's sizeable capex program of Poland zloty 1 billion.

The rating affirmation reflects the progress in the implementation of the capex program in FY10, which contributed to reducing the completion risk of the construction works, the agency said.

The affirmation also reflects the stable and effective legal framework regulating the water and sewage tariff increase process, the agency added. MWiK increased the combined water and sewage tariff for 2011 by 19.5%, mainly due to raising depreciation, real estate tax and debt service costs.

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