Fitch ups Krasnodar view to positive

Fitch Ratings said it changed the outlooks on the Russian Krasnodar region's long-term ratings to positive from stable. The agency also said it affirmed its long-term foreign- and local-currency ratings at BB, short-term foreign-currency rating of B and national long-term rating of AA-(rus).

The positive outlook reflects an expectation that the region will successfully control its operating expenditure and that investment-driven economic growth will support a revenue increase, allowing the region to record high operating margins over the medium term, Fitch said.

The ratings reflect the region's well-diversified and well-developed economy, which generates stable tax revenue flows, sound budgetary performance and a low debt burden, the agency said.

The ratings also factor in a weakening national economy and growing contingent liabilities stemming from public sector entities and from guarantees issued, Fitch 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.