YEREVAN, May 2. /ARKA/. Armenia’s Finance Minister, Vahe Hovhannisyan, addressed concerns regarding the stagnation of the country’s credit rating despite positive financial indicators reported by the government over the past seven years.
Hovhannisyan noted that the reasons for the rating’s lack of change are complex. While there was an improvement in ratings during 2022-2023, recent discussions with investors ahead of the planned Eurobond issuance in March 2025 raised questions about the current “BB-” rating.
“In our view, the main factor impacting our rating is the geopolitical situation,” he explained during a press conference on Friday.
He added that progress in the country’s rating is anticipated upon the signing of a peace treaty with Azerbaijan.
“Once that happens, we are confident that our rating will improve,” Hovhannisyan stated.
Fitch Ratings confirmed on January 28, 2025, Armenia’s long-term foreign currency Issuer Default Rating (IDR) at ‘BB-’ with a ‘Stable’ outlook.
Meanwhile, Standard and Poor’s (S&P) reaffirmed Armenia’s long-term/short-term sovereign credit ratings on foreign and local currency obligations at ‘B-’/’B’ with a ‘Stable’ outlook on February 26, 2024.
Additionally, Moody’s Investors Service maintained Armenia’s Ba3 sovereign rating with a negative outlook as of March 2022.-0-