The short-term ratings on both cities were affirmed at F3, the agency said.
Brasov’s ratings reflect the city’s stressed but still sound budgetary performance, benefiting from a supportive national policy framework for local governments, moderate level of debt and good debt servicing and debt coverage ratios as well as the city’s ambitious investment plan probably resulting in an increase of debt until 2015 and uncertainty in economic conditions in global and national context, Fitch said.
The stable outlook reflects Fitch’s projection that budgetary performance will gradually improve until 2016 with a strengthening of the debt coverage and debt servicing ratios.
The affirmation reflects Oradea’s stable economic and political position, sound budgetary performance, and supportive regulatory framework. It also takes into account the limited budgetary flexibility and the increasing amount of direct debt.