...Fitch Rating Reports: Fitch Ratings uses a combination of quantitative and qualitative factors in its local and regional government rating reports, as described in the agency's Criteria Report, International Local and Regional Governments Rating Criteria (see Related Criteria). Fitch has a common quantitative budgetary and financial reporting format in its rating reports on international public finance (IPF) entities, which serves as the basis for the agency's analysis. No Standard Presentations: Fitch acknowledges that there are no standard international accounting policies for local and regional governments and that there are many variations in how subnationals present their financial and budgetary information. For example, some only report a cash flow account, while others use modified accruals. More sophisticated entities tend to present financials on a full accrual basis including balance sheet and cash flow statements. Institutional Framework Key: The institutional framework in a...
