MADRID (Standard&Poor's) Aug. 11, 2003--Standard&Poor's Ratings Services said today it affirmed its 'AA' long-term issuer credit rating on the Italian City of Milan. The outlook is negative. "The rating is based on Milan's strong, diversified economic base, expected improvements to operating balances, and expected low deficits before debt retirement over the next three years," said Standard&Poor's credit analyst Myriam Fernández de Heredia. Milan's high potential revenue flexibility and valuable assets are also positive rating factors. The rating is constrained by the city's heavy debt burden. Milan is Italy's second-largest city, with 1.2 million inhabitants. It is the leading manufacturing and financial center in the country, contributing more than 10% of national GDP. Its wealth
