Fitch rates Warsaw bond AAA(pol)

Fitch Ratings said it assigned the city of Warsaw's PLN 600 million fixed-interest domestic bonds due Oct. 25, 2019, a final national long-term rating of AAA(pol). The city is rated AAA(pol) with a stable outlook.

The bonds are issued under the city's PLN 4 billion bond program.

Warsaw's AAA(pol) rating reflects the city's diversified and wealthy local economy and strong tax base, as well as the city's high liquidity and healthy debt ratios, the agency said.

The rating also reflects economic uncertainty and cuts in personal income tax rates effective from Jan. 1 2009, which may weaken Warsaw's operating performance in 2009 to 2010, the agency noted.

The rating considers a projected increase in the city's direct debt and indirect risk relating to the investment plans of the city and its companies, as well as risk stemming from the health care sector, Fitch added.

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