Fitch Affirms Lipetsk Region at 'BB'; Outlook Stable

Mon Oct 28, 2013 12:35pm EDT

MOSCOW/LONDON, October 28 (Fitch) Fitch Ratings has affirmed Russian Lipetsk Region's Long-term foreign and local currency ratings at 'BB', with Stable Outlooks, and its Short-term foreign currency rating at 'B'. The agency 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 unsecured domestic bonds with outstanding amount of RUB5bn (ISINs RU000A0JS8T1, RU000A0JTVZ8). KEY RATING DRIVERS The affirmation reflects Lipetsk's satisfactory operating performance, moderate, albeit increasing, direct risk and prudent financial management. The ratings also factor in the high concentration of the local economy and continuous pressure on operating expenditure. Fitch forecasts further growth of direct risk in 2013 due to the need to finance an expenditure-driven deficit. Direct risk will, however, remain moderate, 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 AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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