MILAN (Standard&Poor's) Oct. 17, 2006--Standard&Poor's Ratings Services said today that it has affirmed its 'AA-' long-term issuer credit rating on the City of Milan, in northern Italy, the country's second-largest city. The outlook remains negative. "The rating reflects Milan's good liquidity position, its above-average revenue flexibility by national and international standards, and relatively good operating balance," said Standard&Poor's credit analyst Bertrand de Dianous. The rating is also supported by Milan's wealth indicators, which stand well above the European average, and its diversified economic base, largely service-driven. On the negative side, the rating also takes into account the city's heavy debt burden and constraints on local and regional government (LRG) autonomy imposed by a framework
