OREANDA-NEWS. Fitch Ratings has affirmed the Russian City of Tula's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB-' with Stable Outlooks and Short-Term foreign currency IDR at 'B'. The agency has also affirmed the city's National Long-Term rating at 'A+(rus)' with Stable Outlook.

The affirmation reflects our unchanged baseline scenario regarding the city's projected satisfactory fiscal performance and the expected containment of its direct risk below 40% of current revenue in the medium term.

The ratings reflect Tula's projected structural imbalances, weaker than historical average fiscal performance in the medium term and Russia's weak institutional framework amid a deteriorated macro-economic trend. The ratings also consider the city's low debt with moderate exposure to refinancing risk along with continued support from Tula Region (BB/Stable).