At the same time, Moody’s has affirmed the Ba1 rating on Alba Iulia, the rating agency said in a statement.
The outlook change follows the stabilization in the operating environment for Romanian sub-sovereigns, reflected by the same change in outlook on the sovereign, the statement noted.
“The outlook change also reflects Moody’s view that the creditworthiness of Alba Iulia is directly linked to that of the sovereign,” Moody’s said.
It said the affirmation of Alba Iulia’s rating reflects the municipality’s proven track record of prudent budgetary management, as reflected in its sound operating surpluses, improving financial performances and comfortable liquidity position.
The comprehensive system of supervision and financial reporting stipulated by national law is also recognized as an important contributor to the municipality’s overall good fiscal discipline.