OREANDA-NEWS. Fitch Ratings has today assigned the Republic of Karelia's forthcoming issue of RUB500m domestic bond with a maturity of four years a National Long-term "A(rus)" rating.

The republic is rated Long-term "B+" and National Long-term 'A(rus)'. Both ratings have Positive Outlooks. The Short-term rating is "B".

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.