Fitch Ratings has assigned the municipality of Constanța a rating of 'BBB-', with a negative outlook, the same level as that of Romania. The ratings of local administrations are essential for attracting funds for investments, influencing borrowing costs. Adrian Codîrlășu, president of CFA Romania, explained that the rating does not reflect administrative quality, but the risk of default on municipal obligations. Constanța is among the few cities in Romania evaluated by Fitch, alongside Bucharest, Oradea, Brașov, and Buzău, all having the same rating. The evaluation process includes analyzing the stability of revenues, debts, and repayment capacity.
Fitch appreciated Constanța's diversified economy but pointed out the risks associated with variable interest debt denominated in euros. The final rating cannot exceed that of Romania, which limits the municipality's borrowing prospects. A better rating can reduce borrowing costs, having an indirect impact on the local budget and investments.
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