Fitch ups Republic Sakha

Fitch Ratings said it upgraded the Russian Region of Republic Sakha (Yakutia)'s long-term and short-term foreign currency ratings to B+ from C. At the same time, the agency has assigned the region a stable outlook.

Fitch said the upgrade reflects the region's efforts at improving its debt structure, stable operating performance and the strong growth of its key mining industries.

However, Fitch said the rating also takes into account its high dependence on the mining sector, in particular the world's second largest diamond company Alrosa. This results in limited diversification, making the local economy vulnerable to commodity price fluctuations.

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