Article: ITALY: MOODY'S DOWNGRADES THE ITALIAN CITY OF NAPLES' DEBT TO A2; STABLE OUTLOOK.

Moody's Investors Service has downgraded the City of Naples' long-term debt rating to A2 from A1. The rating outlook is stable. The rating action reflects Moody's view of the persistent difficulties facing Naples as a result of the city's record in generating its own sources of revenue and its increasing financial exposure. Naples' poor collection rates on local taxes and charges - primarily on fines and waste management tax - have been exacerbating the pressure it faces on cash flow generation, leading to a high and growing level of accumulated receivables. This pressure has resulted in increasing delays in payments, thereby driving liquidity pressure. The ...

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