S&P downgrades Bucharest on EUR 500 mln eurobonds, then withdraws rating
The ratings agency gripes over Bucharest's "developing and unbalanced" institutional framework, as well as its weak liquidity situation, which it gives as additional reasons for downgrade. “Nevertheless, the ratings were underpinned by Bucharest's position as Romania's administrative, financial, and economic center, and the city's very high operating budget surplus,” S&P went on.
The agency withdrew the ratings for “contractual reasons”, which in turn led to an insufficient flow of information for rating surveillance.
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