KIEV, July 30 - Fitch Ratings today affirmed the city of Kharkiv's credit ratings at long-term foreign and local currency 'B' with negative outlook, short-term foreign currency 'B', and national long-term 'AA-(ukr)'.

The outlook on the national long-term rating is stable.

"The ratings factor in the city of Kharkiv's worsening economy, lower tax revenue and operating expenditure rigidity. However, they also consider the city's satisfactory but declining budgetary performance, zero direct debt and low indirect risk. The negative outlook reflects that of Ukraine's ratings, as the city's ratings are capped by the sovereign," a statement on the official agency's Web site reads.