Fitch upgraded its outlook on Moscow and St. Petersburg to "positive" from "stable"

International rating agency Fitch on Thursday improved its outlook on Moscow and St. Petersburg to the "positive" from "stable" and affirmed the long-term ratings of cities in national and foreign currencies at level «BBB», the agency said in a statement.

This action reflects the recent revision of forecasts of long-term issuer default rating of Russia to "positive" from "stable" against the backdrop of recovery of the domestic economy, as well as confirmation of long-term IDR of Russia in foreign and national currencies at the level «BBB».

In addition, according to a release, increase forecast reflects expectations of analysts Fitch, which both Moscow and St. Petersburg will continue to demonstrate strong operating results amid economic development.

Also confirmed by short-term foreign currency ratings of Moscow and St. Petersburg - at the level «F3» and long-term ratings of cities on a national scale - «AAA (rus)» from "stable" outlook.

The outlook revision on the ratings of the Russian Federation to "positive» Fitch explain analysts' expectations that the decrease in inflation, the transition to a policy of more flexible exchange rate, a significant repayment of private external debt, the stabilization of the banking sector and increased foreign exchange reserves will reduce the financial vulnerability of Russia.