On Sept. 7, 2005, Standard&Poor's Ratings Services affirmed its 'AA-' long-term issuer credit rating on the City of Milan, in northern Italy, the country's second-largest city. The outlook is negative. The rating reflects Milan's 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 the city's heavy debt burden and the constraints on local and regional government (LRG) autonomy imposed by the framework of intergovernmental relations enforced by the Republic of Italy (AA-/Negative/A-1+). Milan's operating margin
