Fitch affirms Moscow

Fitch Ratings said it affirmed the City of Moscow's long-term foreign and local currency ratings at BBB- and the short-term at F3.

The outlook is stable.

The ratings reflect continued improvements in Russia's macro economic environment in the last two to three years, which have had a direct positive impact on Moscow's revenue in view of the large component of economically sensitive taxes in its budget, Fitch said.

The agency added that the ratings also take into account the recent changes in Russia's institutional framework, in particular the social benefits reform has placed an additional burden on the city's budget by the local government's decision to keep in place its concession and social privileges alongside the new cash allowance payouts.

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