Fitch affirms and withdraws Kirov Region's ratings
MOSCOW. May 4 (Interfax) - Fitch Ratings has affirmed the Russian Kirov Region's Long-term foreign and local currency ratings at 'B', Short-term foreign currency rating at 'B' and National Long-term rating at 'BBB+(rus)'.
The agency said in a statement: "Outlooks on the Long-term ratings remain Positive."
"Despite a declining operating margin in 2011, due to lower than anticipated national subsidies, the Positive Outlook continues to reflect confidence in the Kirov region's economy, which experienced an increase of tax revenue by 22% yoy in 2011 (25% in 2010). Fitch expects the region's budgetary performance to improve with operating margins above 5% in 2012-2014, the reduction of the region's deficit before debt variation to below 5% of total revenue and the direct risk to remain below 30% of current revenue in 2012-2014.
"Fitch has simultaneously withdrawn the ratings as Kirov region has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Kirov region."
