On Oct. 17, 2006, 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 remains negative. The rating reflects Milan's good liquidity position, its above-average revenue flexibility by national and international standards, and relatively good operating balance. The rating is also supported by Milan's wealth indicators, which stand well above the European average, and its diversified economic base, largely service-driven. On the negative side, the rating also takes into account the city's heavy debt burden and constraints on local and regional government (LRG) autonomy imposed by a framework of intergovernmental relations that permits unilateral actions by central government. The city's operating margin is good
