Good operating margin by national standards; Strong revenue flexibility; Commitment to self-finance most of the capital program; Good liquidity position; and Diversified economic base. Heavy debt burden; and Constraints from Italy's central government on financial and managerial autonomy. The rating on the City of Milan, Italy's second-largest city, reflects its stable operating balance, good liquidity position, strong revenue flexibility, and commitment to self-financing most of its capital program. The rating is also supported by Milan's wealth indicators, which stand well above the European average, and its diversified economic base as Italy's leading manufacturing and financial center. The rating also takes into account, however, the city's heavy debt burden and the constraints on local and regional government (LRG) autonomy imposed by
