Fitch: Oradea view to stable

Fitch Ratings said it revised the City of Oradea's outlook to stable from negative and affirmed its long-term foreign- and local-currency ratings at BB+ and BBB-, respectively, along with its short-term foreign-currency rating at B.

The outlook revision reflects a similar rating action on Romania's outlook, Fitch said.

The ratings reflect Oradea's economic potential due to its strategic location near the Hungarian border and its improved budgetary performance, balanced by increased debt, higher debt-servicing needs and weakened debt coverage ratios, the agency said.

A negative rating action could be triggered by the operating margin falling below 10% and debt exceeding 100% of current revenue, Fitch added.

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