Fitch: Volgograd, bond BB-

Fitch Ratings said it assigned long-term foreign- and local-currency ratings of BB- to Russia's Volgograd region, along with a short-term foreign-currency rating of B and a national long-term rating of A+(rus).

The outlook is stable.

The agency also said it assigned a long-term local-currency rating of BB- and a national long-term rating of A+(rus) to its RUB 3 billion outstanding domestic bond issues due May 4, 2016.

The ratings reflect the low debt burden, the rebound of the region's operating performance after a temporary deterioration in 2009 and an expectation of a gradual improvement in the region's operating performance in 2011 to 2013, Fitch said.

But the ratings also factor in the high proportion of short-term bank loans in the region's debt and the high rigidity of its budget, the agency said.

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