Fitch lifts Bialystok

Fitch Ratings said it has upgraded the Polish City of Bialystok's long-term foreign and local currency issuer default ratings to BBB from BBB- and national long-term rating to A+(pol) from A(pol).

The outlooks are stable.

According to the agency, the upgrade reflects low pressure to increase debt due to the city's improved self-financing capacity of investments.

The upgrade takes also into consideration strong debt ratios resulting from the city's robust operating performance and healthy liquidity, which improved significantly after the sale of the heating company, MPEC.

Fitch said it projects Bialystok's direct debt will decrease to 420 million zloty or below 30% of current revenue by 2018 from 680.2 million zloty in 2014 (54%). The city used 20 million zloty of the 260 million zloty proceeds from the MPEC sale for early repayment of bonds in 2014.

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