MILAN (Standard&Poor's) August 2, 2004--Standard&Poor's Ratings Services said today that it had affirmed its 'AA-' long-term issuer credit rating on the City of Milan in northern Italy. The outlook is stable. "The affirmation reflects the city's improved operating balances, excellent liquidity position, good revenue flexibility, and diversified economic base, as well as its heavy debt burden," said Vittoria Ferraris, a credit analyst in Standard&Poor's Milan office. Milan's operating margin increased to nearly 6% of operating revenues in 2003 thanks to the city's successful fight against tax evasion, increased tariffs, successful outsourcing policy, and strong focus on cost control. This increase helped reduce financing requirements slightly, despite a 1.5x increase in investments. It is expect
