Fitch Affirms Lipetsk Region at 'BB'; Outlook Stable

Reuters

MOSCOW/LONDON, October 28 (Fitch) Fitch Ratings has affirmedRussian Lipetsk Region's Long-term foreign and local currency ratings at 'BB',with Stable Outlooks, and its Short-term foreign currency rating at 'B'. Theagency has also affirmed the region's National Long-term rating at 'AA-(rus)'with Stable Outlook.The rating action also affects Lipetsk Region's senior unsecureddomestic bonds with outstanding amount of RUB5bn (ISINs RU000A0JS8T1,RU000A0JTVZ8).KEY RATING DRIVERSThe affirmation reflects Lipetsk's satisfactory operatingperformance, moderate, albeit increasing, direct risk and prudent financial management.The ratings also factor in the high concentration of the local economy andcontinuous pressure on operating expenditure.Fitch forecasts further growth of direct risk in 2013 due to theneed to finance an expenditure-driven deficit. Direct risk will, however, remainmoderate, at around 40% of current revenue in 2013 (2012: 30.5%).International Local and Regional Governments Rating CriteriaAdditional Disclosure Solicitation StatusALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS ANDDISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THISLINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION,RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLEON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'SCODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATEFIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLEFROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHERPERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN ANEU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUERON THE FITCH WEBSITE.

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