{"id":108052,"date":"2017-06-05T13:05:48","date_gmt":"2017-06-05T13:05:48","guid":{"rendered":"https:\/\/armbanks.am\/2017\/06\/05\/246384\/"},"modified":"2024-12-15T13:29:41","modified_gmt":"2024-12-15T13:29:41","slug":"fitch-affirms-yerevans-idr-in-foreign-and-national-currencies-at-b-stable-outlook","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2017\/06\/05\/108052\/","title":{"rendered":"Fitch affirms Yerevan\u2019s IDR in foreign and national currencies at \u201cB+\u201d, \u201cStable\u201d outlook"},"content":{"rendered":"<p><strong>YEREVAN, June 5. \/ARKA\/.<\/strong> Fitch Ratings has confirmed Yerevan\u2019s long-term issuer default ratings (IDR) in foreign and national currencies at \u201cB+\u201d with \u201cStable\u201d outlook and also short-term foreign currency IDR at \u201cB\u201d.<\/p>\n<p>The rating agency says Yerevan\u2019s rating is suppressed by Armenia\u2019s rating \u201cB+\u201d with \u201cStable\u201d outlook, particularly the country\u2019s institutional environment for local and regional authorities, which is considered by Fits as weak.<\/p>\n<p>The city\u2019s status of capital and its acceptable budget performance indicators supported by stable transfers from the central government as well as the lack of any debt are taken into account here.<\/p>\n<p>The agency forecasts that Yerevan\u2019s budget indicators will remain acceptable in 2017-2019 with a lower one-digit operational margin (2016 \u2013 1.6%).<\/p>\n<p>Fitch specialists say correction of the city\u2019s operational revenue to adverse shocks, which is connected with the protracted slowdown in Armenia\u2019s economy in 2014 and 2015 is likely to continue.<\/p>\n<p>The agency also expects that the budget of Yerevan will be close to balanced in 2017-2019, at the levels already recorded by the capital city before (in 2012-2016 \u2013 0.15%).<\/p>\n<p>In 2016, the city\u2019s operational revenue amounted to AMD 77.3 billion, just as predicted by the agency, with stable inflow of transfers and tax revenue.<\/p>\n<p>Yerevan continued receiving financial assistance from the central government.<\/p>\n<p>Fitch says current transfers will remain stable \u2013 at about 75% (in 2015 at 76%) of the city\u2019s operational revenue.<\/p>\n<p>Its capital spending continued shrinking in 2016 \u2013 they fell to 5.7% or 7% of the total spending after the average rate of 24% in 2012-2014.<\/p>\n<p>Fitch specialists say they have expected such reduction, since the city has completed significant investments in infrastructures, which came as public transfers and donor grants.<\/p>\n<p>The rating agency expects that the city will continue financing capital spending from the central government\u2019s sales of assets and capital transfers.<\/p>\n<p>Yerevan residents make up 36% of Armenia\u2019s population, but Yerevan welfare indicators are low in the international context.<\/p>\n<p>Fitch estimated Yerevan\u2019s per-capital GDP at AMD 1.8 million ($3,770) in 2015. &#8212;0&#8212;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fitch Ratings has confirmed Yerevan\u2019s long-term issuer default ratings (IDR) in foreign and national currencies at \u201cB+\u201d with \u201cStable\u201d outlook and also short-term foreign currency IDR at \u201cB\u201d<\/p>\n","protected":false},"author":1,"featured_media":172077,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[15513,15645,13896,13494,14398,13525,12214],"class_list":{"0":"post-108052","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-en","8":"category-news","9":"tag-b-2","10":"tag-fitch-2","11":"tag-foreign","12":"tag-idr","13":"tag-national-currencies","14":"tag-stable","15":"tag-yerevan"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/108052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=108052"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/108052\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/172077"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=108052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=108052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=108052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}