Standard & Poor’s has lowered the rating for the city of Łódź. Łódź continues to carry the rating of BBB+ but changed from “stable” to “negative outlook”.
This is the direct result of last week’s downgrade of Poland from A – to BBB + with a negative outlook. This rating means that there is risk of further decline of creditworthiness. Since Poland’s rating has been lowered, Polish cities have to follow. Cities can not carry a higher rating than the overall rating of the country, which is why Standard & Poor’s began lowering individual city ratings. The first Polish cities to take the hit were Łódź and Krakow.
For several years Łódź had a rating of BBB + with a stable outlook. Now it is rated BBB +, but with a negative outlook. Krakow’s rating was lowered from A- to BBB + with a negative outlook.