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 (A/Watch Neg/A-1). The rating on Milan primarily reflects and is capped by Italy's 'A' long-term rating. It also reflects Milan's wealthy economic base, very positive liquidity position, and our view of the city's good financial flexibility. The rating is constrained by Milan's still high tax-supported debt and weak budgetary performance, although we believe this will improve during the next few years. In accordance with our criteria for rating local and regional governments (LRGs), we also assign an "indicative credit level"
