OREANDA-NEWS. Fitch Ratings has revised the Outlook on Poland-based Zaklad Komunikacji Miejskiej w Gdansku Sp. z o.o.'s (ZKM) Long-term local currency Issuer Default Rating (IDR) and National Long-term rating to Positive from Stable. Fitch has affirmed the Long-term local currency IDR at ' BBB ' and the National Long-term rating at 'A+(pol)'.

Fitch has also affirmed ZKM's PLN220m tram and PLN60m bus revenue bond programmes and their bonds' Long-term local currency ratings at 'BBB+' and National Long-term ratings at 'AA-(pol)'.

KEY RATING DRIVERS
The rating action follows the recent revision of Outlook of the Long-term local currency IDR and the National Long-term rating to Positive from Stable of the Polish City of Gdansk, ZKM's sole owner (see 'Fitch Revises Polish City of Gdansk's Outlook to Positive; Affirms at 'A-'' dated 18 March 2016 at www.fitchratings.com).

In Fitch's view, ZKM and its revenue bond programmes remain credit-linked with the City of Gdansk as per Fitch's public sector entity's rating criteria (see 'Fitch Affirms ZKM Gdansk at 'BBB'; Outlook Stable' dated 17 November 2015 and the Full Rating Report on ZKM dated 30 November 2015 at www.fitchratings.com).

RATING SENSITIVITIES
ZKM and its revenue bonds may be upgraded if the City of Gdansk's ratings are upgraded, assuming ZKM's and its revenue bond programmes' links with the city remain strong, or if the programmes benefit from an explicit guarantee by the city.