OREANDA-NEWS. Fitch Ratings has upgraded the Russian Tver Region's Long-term foreign and local currency Issuer Default Ratings (IDR) to 'B+' from 'B' and affirmed its Short-term foreign currency IDR at 'B'. The National Long-term rating has been upgraded to 'A(rus)' from 'BBB+(rus)'. The Outlooks on the Long-term IDRs and National Long-term rating are Positive.

The upgrade reflects the region's improved fiscal performance during 2013-10M14, which led to a restoration of the operating balance and a narrowing of the budget deficit before debt variation beyond Fitch's projections.

The Positive Outlook reflects Fitch's expectation that the region's budgetary performance will continue to improve over the medium-term based on the administration's commitment to control spending. Extra support from the federal government in the form of subsidised budget loans will help limit Tver's interest payments over the medium-term.

The region has a moderately developed economy, which is dominated by a well-diversified industrial sector. GRP per capita was 18% below the national median in 2012. In 2013 GRP grew 1.3% yoy, in line with the national average. The administration expects the regional economy will see modest growth over the medium-term.

RATING SENSITIVITIES
Maintaining an operating balance that is sufficient to cover interest payments, coupled with debt metrics being in line with Fitch's forecasts, would lead to an upgrade.