Italian Region of Campania 'BBB-' Rating Affirmed; Outlook Stable

OVERVIEW Campania's financial management has successfully tightened health care costs, with the help of the central government, reduced supplier debt in the health care sector, and cleaned up its high level of receivables and payables since 2011, although it still needs to improve its cost control mechanisms. We continue to assess Campania's financial management as weak because we believe the region still needs to eradicate its substandard financial practices that have hindered expenditure controls and encumbered the region with arrears and court-ordered cash seizures. We have revised downward our assessment of Campania's budgetary flexibility to very weak from weak because Campania's modifiable revenues have further decreased and the possibility to increase taxes is very limited. We are affirming our long-term

...Overview Campania's financial management has successfully tightened health care costs, + with the help of the central government, reduced supplier debt in the health care sector, and cleaned up its high level of receivables and payables since 2011, although it still needs to improve its cost control mechanisms. we continue to assess Campania's financial management as weak because we believe + the region still needs to eradicate its substandard financial practices that have hindered expenditure controls and encumbered the region with arrears and court- ordered cash seizures. we have revised downward our assessment of Campania's budgetary flexibility to + very weak from weak because Campania's modifiable revenues have further decreased and the possibility to increase taxes is very limited. we are affirming our long-term rating on the region of Campania at '###-'. + The stable outlook on Campania mirrors that on italy. + raTing aCTiOn On nov. 20, 2015, Standard & Poor's ratings Services affirmed...

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