Fitch rates Karelia bond A+(rus)

Fitch Ratings said it assigned the Republic of Karelia's forthcoming issue of RUR800 million domestic bond with a maturity of four years a national long-term A+(rus) rating. The republic has long-term local- and foreign-currency ratings of BB-, national long-term rating of A+(rus) and short-term foreign-currency rating of B.

The outlook is stable.

The ratings reflect the republic's strengthening budgetary performance, as a result of tax revenue growth recovery and control over operating expenditure, decreasing debt burden and improving debt structure, Fitch said.

The ratings also factor in high budget rigidity with transfers to municipalities and staff expenditure accounting for up to 60% of the budget expenditure, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.