Very positive liquidity position and healthy cash management. Strong and wealthy economic indicators. Good financial flexibility. Weak budgetary performance. High direct debt burden and tax-supported debt. Standard&Poor's Ratings Services' 'A' long-term issuer credit rating on the Italian City of Milan remains on CreditWatch with negative implications, where it was originally placed on Dec. 5, 2011, following a similar action on the Republic of Italy (which was on CreditWatch negative prior to a downgrade to BBB+/Negative/A-2). The rating on Milan primarily reflects and is capped by Italy's long-term rating. Milan is currently on CreditWatch and the placement will be resolved shortly to reflect the recent sovereign downgrade. It also reflects Milan's wealthy economic base, very positive liquidity position, and
