By Daily sports on July 30, 2021

Barcelona have been handed a rare piece of positive economic news after credit rating agency Fitch opened the door for the club to refinance their debts in order to ease their troubled balance sheet. 

The Catalans’ financial situation has severely affected their ability to operate in the current transfer market, due to their massive wage bill and losses over the last year. 

But the agency’s decision will allow them to take on further funding as they hope to complete several pending deals as well as Lionel Messi’s long-awaited renewal. 

Fitch has informed the club that their BBB- rating has now been approved, effectively a vote of confidence in their ability to manage this current financial situation. 

“It is a very good piece of news, very positive, we could have expected a worse rating" financial analyst Marc Ciria affirmed. 

“Generally, it is a rating which will impart trust in the financial markets.”

Credit ratings agencies are tasked with assessing the stability and viability of nations and businesses in meeting their debt obligations. 

There are three principal operators in this field: Moody's, Standard and Poor's and Fitch. 

Clients are rated with a letter grade, from AAA+, judged to be the safest, most stable investments, to C-, regarded as ‘junk bonds’ which entail the most risk. 

Barcelona's BBB- rating therefore leaves them in a fairly good position and able to continue taking on debt at an annual rate of three per cent or lower. 

The club hopes to refinance up to €1.2 billion (£1.02B/$1.4B) of obligations, including €750m (£639m/$890m) of short-term debt, and give itself more time to pay back creditors. 

Fitch’s decision, however, is also a warning for president Joan Laporta to drastically improve the club’s administration. 

“The negative sign is due to how we are placed,” Ciria added. “If we continue on the same road we will lose that BBB-.

“A BBB+ means you are on track to be very stable. The BBB- warns that if you don't change, you will fall down to CCC+, which is not a good grade.”  (Goal)

•PHOTO: Barcelona players

Source Daily sports

Posted July 30, 2021

Everton Sack Manager Rafa Benitez

Anthony Joshua Vows To Regain Belts From Olesksandr...

Moffi happy to open Nice goals account

Victor Moses leads Chelsea back to the top...

Falcons star Ogbonna hosts men’s football tourney

World Cup Qualifiers: Okumagba lauds Rohr, Eagles, NFF...