In upgrading the prospects of his credit The credit rating agency Moody’s upgraded the Municipality of Athens ‘Ba3’ to positive from stable. a few days after the corresponding upgrade of the outlook of the Greek State debt.

As the house states in its announcement, the above decision reflects the close operational and financial connection of the Municipality of Athens with the central government as well as the expectation that the strong intrinsic strength of its finances will continue.

Moody’s expects that the Municipality of Athens will also benefit from the reduced systemic risk, as shown by the change in the outlook of the Greek Government’s Ba3 debt to positive, reports APE.

He also notes that the municipality will benefit from the improved credit conditions of the State, given the central role of the city as a capital and as an economic and financial hub.

With 40% of the Municipality’s operating income being taxes and fees that depend on the dynamics of the local economy, the expected moderate increase in GDP in the next two years it will support the collection of revenues from the Municipality.

In addition, Moody’s believes that continued improvements in Greece’s fiscal position, the quality of institutions and the level of supervision of regions and municipalities, if sustained, will lead to greater predictability of transfers (resources) from the government, which correspond to approximately 26% of their operating income. European resources, in the context of the Recovery Fund, will also support the local economy.

Source: moneyreview.gr