02 Jan Debt is low partly because loans and bonds incurred prior to
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buy canada goose jacket (The following statement was released by the rating agency) LONDON/MILAN, June 27 (Fitch) The decisive win in Rome’s municipal elections may help end a period of political uncertainty, Fitch Ratings says. But the new Canada Goose Jackets mayor faces long standing challenges to increase canada goose uk outlet revenue and to reform public sector entities (PSEs). Virginia Raggi of cheap canada goose uk the Five Star Movement (M5S) received over two thirds of the vote on 19 June. M5S also secured a majority on Rome’s City Council, winning 60% of the seats. Municipal government will now pass back to the elected administration from a commissioner appointed by canada goose uk black friday Italy’s Interior Ministry Canada Goose online last November after the previous mayor, Ignazio Marino, resigned. The clear majority in Canada Goose Parka the municipal council won by Raggi and M5S will help canada goose uk shop streamline decision making, which had been complicated by political wrangling in past coalitions. We do canada goose store not expect any sudden change in fiscal policy as it has been set with the aim to balance recurrent spending with recurrent revenue set out in canada goose coats on sale Rome’s 2014 2016 recovery plan. However, uncertainty may arise later this year during the preparation canadian goose jacket of the 2017 budget, particularly if Italy’s national government curtails revenue provision to local governments as it seeks to reduce the general government deficit. This would further hamper Rome’s already limited fiscal flexibility. Raggi has pledged to improve services, including public cheap Canada Goose transport and rubbish collection. A failure to improve overall tax and fee collection buy canada goose jacket cheap rates could undermine confidence in Rome’s financial management. This would be negative canada goose clearance for the City of Rome’s ‘BBB’/Stable rating. Rome’s PSEs are a significant burden on the city’s budget and a source of contingent liabilities. Transport provider ATAC and AMA, which handles waste collection, have labour intensive cost structures, making it difficult to cut their cost bases. ATAC started its restructuring in 2015 and aims to break even in Canada Goose Online 2017, although Raggi has indicated that further restructuring is possible. Dealing with AMA may prove Canada Goose Outlet challenging because the low waste tax collection rate fails to cover the city’s defined annual payment to the company. We forecast debt to rise to about EUR1.5bn by 2017 uk canada goose from EUR1.2bn at end 2015, only about Canada Goose sale 25% of operating revenue. Debt is low partly because loans and bonds incurred prior to April 2008 (of which EUR5.5bn are outstanding) are managed separately by the uk canada goose outlet Gestione Commissariale del Comune di Roma (GC), a central government agency that took over the management of old canada goose coats financial liabilities and assets. Rome provides EUR200m annually towards repayment of the debt that was transferred to GC, raising the funds through a personal income tax surcharge and a fee on airport canada goose black friday sale passengers. The national government provides an additional EUR300m each year. GC may cease operations once commercial liabilities (which we estimate at EUR0.5bn still outstanding) are paid (potentially with a haircut) and old receivables are fully cashed or https://www.canadagoose-coats.ca written off. It is unclear whether financial debt which is due to be repaid up to 2048 at least would then revert to Rome’s balance sheet, or that of the national government. We think the latter is more likely because GC is a central government entity. A decision on whether to keep GC operational could also be accompanied by renegotiation of Rome’s annual EUR200m Canada Goose Coats On Sale contribution, which could eventually free up additional budgetary resources for Rome, increasing fiscal flexibility. However, if GC draws down committed loan facilities by the end of 2016 to generate liquidity for debt servicing, its own debt could increase to a level where Rome’s EUR200m contributions and the Italian central government’s EUR300m contributions would be earmarked for debt repayment. The above article buy canada goose jacket originally appeared as a post on the Fitch Wire credit market commentary page. All opinions expressed are those of Fitch Ratings. Related Research Gestione Commissariale del Comune di Roma here ALL FITCH canada goose clearance sale CREDIT canada goose store RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF canada goose factory sale INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. canada goose FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE buy canada goose jacket.