OREANDA-NEWS. Fitch Ratings has today upgraded the Republic of Tatarstan's ("Tatarstan") Long-term foreign and local currency ratings to "BB+" from "BB". The Short-term foreign currency rating is affirmed at "B".

Fitch has also upgraded its National Long-term rating to "AA+(rus)" from "AA(rus)". The Outlooks on the International and National Long-term ratings remain Stable.

The upgrade reflects Tatarstan's continued strong budgetary performance, tight controls over operating expenditure and ability to finance capital expenditure through own sources, keeping direct debt insignificant.

However, the ratings also take into account the republic's high dependence on local economic performance, as tax income becomes the main source of budget revenue.