On 26 October, the General Mayor of the Capital asserted that Fitch Ratings had affirmed the BBB- ranking for the municipality of Bucharest’s long-term rating in both foreign and local currency.
Fitch Ratings is a leading source of credit ratings, analysis, and research for international capital markets. The “BBB-” rating stands for middle-class enterprises that are now satisfactory and have a sufficient payment capacity, indicating that expectations of default risk are currently low.
“The capital remains a safe environment for investors”Nicusor Dan, Bucharest General Mayor
The independent credit profile of the capital is rated at ”BBB+”, meaning that an obligor has the necessary resources to fulfill its financial obligations. However, unfavourable economic situations or altering circumstances are more likely to make the obligee less able to fulfill its financial obligations. Given the current economic and business environment in Bucharest, the information indicates that the rating of the Municipality of Bucharest is at the same level as the sovereign rating of Romania.
This is favourable given that Bucharest needs investments in areas such as heating, infrastructure, mobility, environment, and health, and it has enormous potential for investment development.