LONDON, August 26 (Reuters) - Rising tension with the West could damage foreign investor sentiment towards Russia, ratings agency Fitch said on Tuesday, although it did not immediately threaten Russia's sovereign rating.

But head of emerging European sovereigns Edward Parker told Reuters it could make conditions for Russian corporate and quasi-sovereign borrowers more difficult, as well as affecting sentiment towards other Central European and former Soviet states.

Fitch rates Russia as BBB+ with a stable outlook. Parker said the oil and gas rich country's vast foreign reserves made it less vulnerable, but that it could still suffer consequences from the fallout of its conflict with Georgia.

"In terms of the cost of the conflict, the impact on the economy is negligible," he told Reuters in a telephone interview. "We're not expecting to take a negative action with regards to Russia's rating. The main potential impact on Russia is through an impact on capital flows into the country...affecting foreign investment."

(Reporting by Peter Apps)

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