S&P Global upgrades Armenia’s rating outlook
The prestigious international rating agency S&P Global has revised the outlook on Armenia’s sovereign credit rating to “positive,” while simultaneously affirming the country’s rating at the “BB-” level.
This decision follows a similar upgrade of Armenia’s rating outlook by Fitch Ratings and signifies the continuous strengthening of international economic confidence in the country.
According to the agency’s assessment, the outlook revision is driven by several key factors: the potential for improvement in the regional situation, specifically progress recorded in the normalization process of relations between Armenia and Azerbaijan; Armenia’s sustained positive economic growth dynamics; higher levels of international reserves; and a flexible exchange rate policy that allows for the absorption of external shocks.
S&P Global also emphasizes that the rating is underpinned by the Government’s consistent fiscal policy, moderating risks, and relatively strong external currency positions.
It should be noted that the designation of a “positive” outlook implies a significant probability of an actual rating upgrade during upcoming reviews.
