The agency also assigned the region the national long-term rating of 'BBB(rus)'. All the rating outlooks are stable, the agency said in a statement.
The ratings reflect Leningrad Region's high expenditure rigidity, resulting from a high share of transfers to municipalities and social expenditure, as well as low capital expenditure. Fitch also took into account the growing local economy, led by the industrial sector, and the improving debt structure characterized by a low foreign exchange debt and interest burden.
The stable outlook reflects Fitch's expectations that the economic dynamism in the region will provide for revenue growth and compensate for the rise in operating expenditures. Fitch expects the debt burden to remain moderate, the company said.
