Fitch ups Nizhniy Novgorod to BB-

Fitch Ratings said it upgraded Russia's Nizhniy Novgorod region's long-term foreign- and local-currency ratings to BB- from B+, along with its national long-term rating at A+(rus) from A(rus). The short-term foreign-currency rating is affirmed at B.

The outlook remains stable.

The upgrade reflects the region's strengthening budgetary performance, caused by fast tax revenue growth and control over operating expenditure, decreasing debt burden and improving debt structure, Fitch said.

However, the ratings also factor in a high degree of budget rigidity, as transfers of all kinds dominate the operating spending, and low level of capital spending, the agency said.

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