Fitch lifts Volzhskiy view to positive

Fitch Ratings said it revised the outlook on the Russian City of Volzhskiy's long-term foreign- and local-currency issuer default ratings to positive from stable and affirmed the issuer default ratings at B+.

The agency also said it affirmed the city's short-term foreign-currency issuer default rating at B.

The city's outstanding senior unsecured debt also was affirmed at B+.

The outlook revision reflects Volzhskiy's improved budgetary performance with surplus before debt variation for two consecutive years and an expectation that the city will keep a positive current balance and moderate debt in the medium term, Fitch said.

The ratings also consider the small size of Volzhskiy's budget and the city's high dependence on the decisions of the regional and federal authorities, which lead to volatile performance and low shock resilience, the agency said.

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