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Fitch Affirms Russian Tula Region at 'BB-'; Outlook Stable

21.05.12

Fitch Ratings-London/Moscow-12 December 2011: Fitch Ratings has affirmed the Russian region of Tula's Long-term foreign and local currency ratings at 'BB-'. The agency has also affirmed the region's National Long-term rating at 'A+(rus)' and Short-term foreign currency rating at 'B'. The Outlooks on the Long-term ratings are Stable.

The affirmation reflects the region's growing economy, expected improvement of budget performance, moderate direct risk burden and low contingent liabilities. However, it also factors in the short-term profile of Tula's outstanding debt, which is causing refinancing pressure and still low, albeit recovering operating balance.

Fitch notes that continuing weak budgetary performance caused by an inability to control growth of operating expenditure and/or a significant increase in short-term debt would lead to downward rating pressure. Conversely, maintenance of a sound budgetary performance with margins above

Source: Cbonds. Info