Article: ITALY: RATING OF NAPLES.

Moody's Investors Service has downgraded the City of Naples' long-term debt rating to A1 from Aa3. The outlook is stable. Today's rating action reflects Moody's view of the persistent difficulties facing the city as a result of its poor record in collecting own sources of revenue, its significant exposure to off-balance sheet risk, and institutional framework-related pressures in the context of a weak economy. However, the A1 rating also takes into account the municipal administration's effort to tackling key structural issues, the low level of risk arising from its exit from the declared state of financial distress ('dissesto'), and the moderate, albeit growing, level of ...

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