Standard & Poor’s (S&P) Global Ratings assigns ‘B+’ long-term foreign- and local-currency sovereign credit ratings to Armenia

YEREVAN, October 13, /ARKA/.  On October 12, 2021, S&P Global Ratings assigned its ‘B+’ long-term foreign- and local-currency sovereign credit ratings to Armenia. At the same time, it assigned its ‘B’ short-term foreign- and local currency ratings. The outlook is positive. It also assigned its ‘BB-‘ transfer and convertibility assessment to Armenia.

In an overview the S&P says that the Armenian economy is recovering and that it expects GDP to exceed 2019 levels by next year, and for growth to settle at close to 4% a year over the medium term.

According to S&P, with per capita GDP estimated at around $4,600 this year, absolute levels of income remain modest, while fiscal and external leverage are comparably high.

It says the positive outlook reflects the potential that implementation of the government’s five-year program will generate faster growth, external deleveraging, and further improvements in the country’s monetary policy framework.

Outlook

The positive outlook reflects also Armenia’s prospects for a continued rapid economic expansion over the next two-to-three years. It also reflects the potential for faster-than-anticipated reduction in external leverage as well as stronger fiscal performance, beyond our expectations.

Upside scenario

S&P says it could raise the ratings on Armenia over the next 12 months if it sustained its strong economic performance with no major external headwinds or pandemic-related challenges clouding the medium-term growth prospects alongside sustained structural reform momentum. An upgrade could also follow a larger-than-expected reduction in external debt.

Downside scenario

It could revise the outlook to stable if GDP growth fails to pick up, contrary to our expectations, or if the external deleveraging trend reverses.

S&P says its ratings on Armenia are constrained by evolving institutional settings, low income levels, high external indebtedness, and sizable external financing needs.

‘We also factor in the recent erosion of public finances, albeit with well-contained debt servicing costs. The ratings are supported by Armenia’s positive growth outlook, its fiscal consolidation plans, the availability of external official funding, and a prudent policy framework that has helped preserve economic stability despite severe and synchronized shocks in 2020.’

In late March 2021, Fitch Ratings has affirmed Armenia’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘B+’ with a Stable Outlook.

Moody’s Investors Service (“Moody’s”)  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. -0-

spot_img

POPULAR

Armenian banks’ net profit in Q1 2026 increased by 2.3% to AMD 103.5 billion

The total net profit (after tax) of Armenian banks in Q1 2026 amounted to AMD 103.48 billion, compared to AMD 101.18 billion in Q1 2025, an increase of 2.27%. Moreover, compared to the previous quarter, Q4 2025, the increase was 5.84%.

Some 68% of March inflation in Armenia contributed by food and non-alcoholic beverages-WB

In March, Armenia's inflation rose to 4.5 percent (yoy) from 4.3 percent (yoy) in February, according to World Bank's Armenia Monthly Economic Update – April 2026.

Armbanks Weekly Digest: Key Events in Armenia’s Financial Market (April 13–19)

The week in the Armenian financial market was influenced by updated assessments from international financial institutions, monetary policy signals, and the continued stability of the foreign exchange market.

Grant Akopian Appointed CEO and Chairman of the Management Board of Converse Bank

Converse Bank CJSC announces the appointment of Grant Akopian as Chief Executive Officer and Chairman of  the Management Board of the Bank.

Byblos Bank Armenia joins FinTech Armenia as Founding Member

Byblos Bank Armenia has joined FinTech Armenia Association as a Founding Member, marking a significant milestone in the Bank’s ongoing efforts to drive digital transformation and innovation within the financial sector.

LATEST NEWS

spot_imgspot_imgspot_img