Fitch: Structural Fiscal Imbalance Key Risk for Russian Subnationals

April 20, 2015 9:25 AM

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(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Russian Subnationals: Structural Fiscal Imbalance the Key Risk for Ratings here MOSCOW, April 20 (Fitch) Fitch Ratings says in a new report that the ratings of Russian local and regional governments (LRGs) remain under pressure from structural fiscal imbalances.

For 2015, the credit quality of Russian subnationals is challenged by a sluggish national economy, which is compressing tax proceeds, by accelerating inflation which increases budget spending and by higher cost of borrowing due to a depressed national debt capital market. The LRGs' revenue-generatin...

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