“The ratings reflect Oradea’s developing economy, sustainable investment plans aiming to improve local infrastructure, its sound financial performance and solid track record of state support and control for Romanian cities, Fitch said in a statement.
The ratings also reflect Oradea’s limited budgetary flexibility and the strong increase in debt over the past four years, it added.
“Any downward rating action on Romania will automatically be reflected in Oradea’s ratings,” Fitch said. “A positive change in the sovereign ratings provided budgetary performance and debt, as well as debt servicing ratios remain at current levels, would lead to an upgrade.”