Fitch Positive on Lima

Fitch has revised the outlook on the city of Lima’s BBB minus rating to positive from stable, it says. The move “reflects that despite an increase in debt burden, the strong fiscal position of [Lima] and high operating margins will still result in sound debt metrics comparable with other entities in the BBB category,” the agency says. Fitch notes that it is significant in terms of economics and taxes, but takes into account its investment plans, which are expected to be about 40% debt funded.