PARIS (Standard&Poor's CreditWire) Jan. 10, 2001--Standard&Poor's today affirmed its double-'A' long-term issuer credit rating on the Italian city of Milan. The outlook remains stable. The rating is based on Milan's strong, diversified economic base; reasonable financial performance, with manageable deficits before debt repayment; and increased expenditure flexibility resulting from the recent refinancing of expensive loans. The rating also reflects the city's limited revenue flexibility--owing chiefly to the municipal government's unwillingness to increase tax rates--and somewhat heavy debt burden. This is to some extent offset, however, by the city's extensive assets, which could provide Milan with significant resources were it to find itself in need. Despite a rise in the operating balance in 1999, Milan recorded a
