Good liquidity position coupled with healthy cash management. Profitable shareholding and real estate portfolios. Low contingent liabilities. Strong and wealthy economy indicators. Weakened budgetary performance. Limited financial flexibility. Fairly low self-financing capacity in a context of large investment needs. Heavy and rising debt burden and tax-supported debt. The rating on the City of Milan reflects the city's currently very strong cash holdings coupled with our expectation that liquidity will remain adequate during the next few years. We deem that these two factors, combined with a powerful economy, offset to some extent Milan's weak budgetary performance and growing debt burden. Our assessment of Milan's liquidity position is very positive (see "Liquidity" section below). There is no significant shortfall between operating revenues
