OREANDA-NEWS. Fitch Ratings has today changed the Republic of Karelia's ("Karelia") Outlook to Positive from Stable. Its Long-term and Short-term ratings are affirmed at "B+" and "B" respectively. The National Long-term rating is affirmed at "A(rus)".
 
The Positive Outlook reflects Fitch's expectations of a recovery in budgetary performance in 2007 due to lower spending needs resulting from increased capital expenditure efficiency and high quality of management.

The latter allowed the Republic to successfully overcome budgetary pressures stemming from both the social sector and administrative reforms in 2006.