FITCH RAISED RATINGS OF RUSSIA TO "ВВВ+" FROM "ВВВ"

/REUTERS, July 25, 06/ - International rating agency Fitch raised level of sovereign rating of Russia, and also issuer's default rating in foreign and domestic currency to "ВВВ+" from "ВВВ", it is informed in the message of Fitch. Prediction issuer's default rating is stable. Besides, the agency heightened short-term rating of RF to "F2" from "F3". "Everlasting high prices for raw materials is strengthening macro-economical and financial position of Russia in recorded tempo, which reduces possibility of any risks, while servicing sovereign debt in future," - message says with reference to head of the department of sovereign ratings for Europe countries of developing economy Edward Parker. At the same time the agency notes that ratings of Russia are being holding back by several structural problems and risks. Seeing that, dependence of a country's economy on natural resources makes it open to injury at raw material market, bringing questions of management, competition and diversification. Banking sector is growing rapidly, but its foundation is rather weak. Bureaucracy, corruption and indeterminacy in terms of law headship, weaken business stage. Moreover, temps of structural reforms, growing control of the state over economy and low enough ratio of investments volume to GDP put in doubt the long-term perspectives of growth, notes Fitch. [2006-07-25]