Thu, 5 March
-0.9 C
Yerevan
USD: 377.59 RUB: 4.82 EUR: 438.31 GEL: 138.06 GBP: 504.01

Moody’s affirms Armenia’s rating at Ba3, maintains stable outlook

YEREVAN, SEPTEMBER 1, /ARKA/.Moody’s Investors Service (“Moody’s”) has affirmed August 31 the Government of Armenia’s Ba3 local and foreign currency long-term issuer ratings and foreign currency senior unsecured rating. The outlook remains stable.
The affirmation of the Ba3 ratings is driven by the credit profile’s resilience to the significant shocks of the coronavirus pandemic and geopolitical and domestic political tensions, and Moody’s expectations that growth and fiscal strength will recover over the medium term. The fiscal profile in particular has proven resilient and will stabilize over the medium term, with debt consolidation expected from 2021 onward as growth and revenue rebound, and as the government adjusts expenditure downward in line with fiscal rules. Meanwhile, Moody’s assesses that the 2020 ceasefire agreement with Azerbaijan and the June snap parliamentary election have reduced near-term political risks, supporting economic recovery and minimizing the impact to Armenia’s fundamental growth outlook. External deficits drive currency valuation risks that can transmit to fiscal strength and financial stability, although external buffers have increased to withstand these potential shocks.
The stable outlook reflects balanced risks to the Ba3 rating. While a developing track record of policy effectiveness supports the development of a diversity of higher productivity sectors, growth potential remains constrained by demographic pressures and the small scale of the economy. Upside risk stems from more effective reforms that contribute to sustained growth at higher rates than Moody’s currently assumes over the medium term. Event risk remains the key source of downside risk due to geopolitical tensions with neighboring countries, and external vulnerability and banking system risks resulting from the high share of foreign-currency debt, structural current account deficits, and a highly dollarized banking system.
Armenia’s local and foreign currency country ceilings remain unchanged at Baa2 and Ba1, respectively. The four-notch gap between the local currency ceiling and the sovereign rating reflects a balance between the government’s small footprint in the economy and strong institutions, and geopolitical tensions with neighboring countries and external deficits that expose the economy to external shocks. The two-notch gap between the foreign currency ceiling and the local currency ceiling incorporates Moody’s assessment of Armenia’s policy effectiveness and transfer and convertibility restrictions in times of stress. -0-

spot_img

POPULAR

Banks in Armenia will refund overcharged fees for cashless POS transactions to businesses

Technical issues and inaccuracies are possible during the initial implementation of the Central Bank of Armenia's Board decision regarding fees for cashless card transactions, the Union of Banks of Armenia (UBA) stated.

Love Is… Card by Unibank – An Iconic Design and a Romantic Trip for Two to Paris

Unibank has launched a limited-edition series of bank cards featuring the Love Is… design — bright, instantly recognizable, and filled with warm nostalgia.

How leaders build trust: ACBA Business Club

During the first ACBA Business Club of 2026, businessmen discussed the art of building trust and emotional management skills in the business environment.

The average exchange rate of the Armenian dram to the US dollar in February was 4.5% lower than a year ago

In February 2026, the average exchange rate of the Armenian dram to the US dollar was 377.6 drams (395.6 drams in February 2025).

Byblos Bank Armenia introduces the Mastercard World card

Byblos Bank Armenia has introduced its new Mastercard World card, offering numerous benefits both in Armenia and abroad.

LATEST NEWS

spot_imgspot_imgspot_img