Article: ITALY: MOODY'S DOWNGRADES CITY OF NAPLES TO A3; NEGATIVE OUTLOOK.

Moody's Investors Service has today downgraded the City of Naples' long-term debt rating to A3 from A2 and changed the outlook to negative from stable. "Today's rating action primarily reflects Naples' persistent difficulties in cash flow generation and its increasing financial and commercial exposure as of fiscal year 2008, in the context of structural budgetary rigidity," comments Francesco Soldi, Moody's lead analyst for Naples. The negative outlook reflects Moody's view on the extent of structural issues affecting Naples' budget in the context of high systemic pressures. "Persistent poor collection rates on local taxes and charges -- primarily on fines and waste ...

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