OREANDA-NEWS. Fitch Ratings has today revised the Outlooks on Ukraine's foreign and local Issuer Default ratings ("IDR") to Positive from Stable and affirmed the ratings at 'BB-' (BB minus).

The agency has also affirmed the Country Ceiling at 'BB-' (BB minus) and the Short-term rating at 'B'.

The rating action reflects Fitch's assessment that Ukraine's sovereign ratings could continue to move up the scale as the economy develops and the country establishes a longer record of political stability.

Fitch expects Ukraine's economy to be supported by strong consumption and a pick-up in investment.

The price Ukraine pays Russia for gas imports rose to USD95/thousand cubic meters ("tcm") in January from USD50 tcm, but the increase seems to have been absorbed smoothly. This lends confidence that the energy-intensive economy can weather a further hike to USD130/tcm expected in 2007.