Fitch lowers Nizhniy Novgorod

Fitch Ratings said it downgraded the Russian city of Nizhniy Novgorod’s long-term foreign- and local-currency issuer default ratings to BB- from BB and national long-term rating to A+(rus) from AA-(rus).

The agency also said it affirmed the short-term foreign-currency issuer default rating at B.

The outlook is stable.

The downgrades reflect the city’s weak fiscal performance in 2014 through 2015, leading to a consistently negative current balance, Fitch said.

The downgrades also consider its increasing short-term debt, which has caused higher refinancing pressure, the agency said.

The short-term maturity profile of Nizhniy Novgorod’s debt is a risk, Fitch added, as the city will have to repay almost its entire debt stock by year-end 2016.

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