MILAN (Standard&Poor's) June 24, 2005--Standard&Poor's Ratings Services said today that it has assigned its 'AA-' senior unsecured long-term rating to the City of Milan's (AA-/Stable/--) proposed €1.635 billion ($1.971 billion) bond maturing in 2035. The proceeds will be dedicated to refinancing existing debt. "The rating on the bond is the same as the city's issuer credit rating," said Standard&Poor's credit analyst Bertrand de Dianous. "Milan's 'AA-' rating reflects the city's improved operating balances, good liquidity position, relatively good revenue flexibility, and diversified economic base." The rating also takes into account the city's heavy debt burden, mitigated by a large asset portfolio. In 2004, Milan posted a good operating margin, at 5.3% of operating revenues.
