MILAN (Standard&Poor's) Sept. 15, 2008--Standard&Poor's Ratings Services said today that it revised its outlook on the Italian City of Milan to negative from stable. At the same time, the 'A+' long-term issuer credit rating was affirmed. "The rating reflects Milan's good liquidity position, still-strong fiscal flexibility, and low contingent liabilities thanks to a profitable portfolio of shareholdings," said Standard&Poor's credit analyst Roberto Stasi. These factors are offset by tightened budgetary performances and a high debt burden, which could continue to increase on the back of an ambitious capital program. In 2007, Milan's budgetary performance deteriorated. The operating margin, excluding urban concession fees used to finance operating expenditures, stood at negative 1.1% of operating revenues.
