July 30 – Spanish giants FC Barcelona have received a triple B negative rating from credit rating agency Fitch, which the club, burdened by debts and operating on a ‘shoestring’ budget, considered a vote of confidence.
“The confidence shown by Fitch allows the club to look to the future with optimism and at a moment when the organisation is adjusting is financial viability plan as well as its strategic plan,” said FC Barcelona in a statement.
Still, the BBB rating will be a timely reminder for Barcelona to improve their dramatic finances. The club wants to refinance up to €1.2 billion of obligations, including €750 million of short-term debt, which will allow the club more time to pay back creditors.
The rating indicates that “expectations of default risk are currently low,” and that “the capacity for payment of financial commitments is considered adequate” but that “adverse business or economic conditions are more likely to impair this capacity.”
Barcelona must cut costs and raise new funds in order to meet La Liga’s financial regulations. They have been restricted in the transfer market because of a lack of cash.
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