OREANDA-NEWS. Fitch Ratings has today assigned a National Long-term 'A(rus)' rating to the Russian Nizhniy Novgorod region's forthcoming RUB2 billion domestic five-year bond issue.

The region's other ratings are Long-term foreign and local currency 'B+' ratings and a Short-term 'B' rating. All the rating Outlooks are Stable.

The ratings reflect the strong local economy, which provides ongoing tax revenue increases. This allows the region to strengthen both its budgetary performance and debt structure. However, the ratings factor in Nizhniy Novgorod's high degree of budget rigidity with transfers dominating its operating spending. They also take into account the region's high debt burden.

The Stable Outlook reflects Fitch's expectations that the economic expansion will drive revenue growth, further improving budgetary performance and debt burden reduction.