The city which is chosen to host the 2012 Olympics could incur significant costs that might affect its creditworthiness, a report published Standard & Poor's said today.
The report, ‘The Cost of Olympic Gold: the Credit Effect of Hosting the 2012 Olympics', assesses each city's financial bid and its potential impact on the city's budget and debt profile.
Of the candidate cities, S&P said London had the largest Olympic-related capital budget at $15.8bn, toward which the Greater London Authority (GLA) will contribute a relatively small part.
The GLA itself does not plan to raise any debt for the Olympics, but instead is prepared to increase a specific local tax, said S&P.
The rating on the GLA should not be affected by the Olympic bid, the ratings agency said.
