OREANDA-NEWS. Fitch Ratings has downgraded the Polish Region of Wielkopolska's Long-Term Local Currency (LTLC) Issuer Default Rating (IDR) to 'A-' from 'A'. The IDR has a Stable Outlook. A full list of ratings is at the end of this commentary.

Under EU credit rating agency (CRA) regulation, the publication of International Public Finance reviews is subject to restrictions and must take place according to a published schedule, except where it is necessary for CRAs to deviate from this in order to comply with their legal obligations. Fitch interprets this provision as allowing us to publish a rating review in situations where we believe makes it inappropriate for us to wait until the next scheduled review date to update the rating or Outlook/Watch status. In this case the deviation was caused by our downgrade of the sovereign's LTLC IDR on 22 July 2016.

The next review date for the Region of Wielkopolska will be in the first quarter of 2017.

The region's other ratings were last affirmed (Foreign Currency IDRs) and upgraded (National Rating) on 22 July 2016 and are unaffected by the recent sovereign rating downgrade.

KEY RATING DRIVERS

The rating action reflects the following rating drivers and their relative weights:

HIGH

Following the downgrade of Poland's LTLC IDR on 22 July 2016 (See 'Fitch Applies Criteria Changes to Poland's Ratings at www. fitchratings. com), we have taken a similar rating action on Wielkopolska as its IDRs are constrained by the sovereign's. Under our criteria only in exceptional circumstances can a local or regional government be rated above the sovereign.

The National Long-Term Rating could be subject to changes following potential recalibration of the National Rating scale.

RATING SENSITIVITIES

The IDRs of Wielkopolska are constrained by the sovereign (A-/A-; Stable), and will mirror movement in the sovereign IDRs.

Sustained deterioration in the region's operating margin or a significant rise in direct debt, resulting in a weak debt payback of above nine years could trigger a downgrade.

The current ratings are as follows:

Long-Term Local Currency IDR: downgraded to 'A-' from 'A'; Outlook Stable

Long-Term Foreign Currency IDR: 'A-'; Outlook Stable

Short-Term Foreign Currency IDR: 'F2'

National Long-Term Rating: 'AAA(pol)'; Outlook Stable