Fitch rates Penza BB

Fitch Ratings said it assigned the Russian Penza region long-term foreign- and local-currency BB ratings, a short-term foreign-currency B rating and a national long-term AA- rating.

The outlook is stable.

The ratings reflect the relatively small size of Penza's economy, its significant dependence on the agricultural sector, high expenditure rigidity stemming from the large share of transfers in the regional budget and the short-term profile of its outstanding debt, Fitch said.

On the other hand, the ratings factor in the region's significant growth in tax revenue, high operating and current margins, decreasing debt burden and high quality of budgetary management, the agency said.

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