Arezzo

According to Moody's Investors Service, which has assigned the Province of Arezzo an Aa3 rating, its strengths are as follows:

• a relatively wealthy economy in relation to national parameters and upon which the recent unfavourable situation of the local manufacturing sector has had a negative impact;
• political stability which allows for continuity in terms of government's action;
• good and growing operating margins;
• comfortable liquidity.
  
  

The Aa3 rating assigned to this Province is based on the relative prosperity of the local economic fabric, the political stability, the positive and improving results of the current account as well as a satisfactory cash flow. The Province of Arezzo, which is part of Tuscany, can boast a relatively wealthy economy whose contribution to the national and regional gross added value amounts to 0.6% and 8.4% respectively.

The local economy, which revolves around the industrial sector which accounts for 36% of the provincial added value, is characterised by a high number of small companies manufacturing jewels and textiles. As far as the labour market is concerned, the Province of Arezzo enjoys favourable conditions as shown by its unemployment rate (4.4% in 2004) which is lower than the national (8%) and regional averages (5.2%).

The rating is supported by the dynamic nature of the overall local income which, however, is mainly generated by the car sector, as well as the efforts made by the provincial authorities to slow down the growth of operating expenses. Both factors have contributed to good and growing current account surplus.