{"id":147592,"date":"2023-02-28T13:55:02","date_gmt":"2023-02-28T13:55:02","guid":{"rendered":"https:\/\/armbanks.am\/2023\/02\/28\/250786\/"},"modified":"2024-12-15T13:50:34","modified_gmt":"2024-12-15T13:50:34","slug":"fitch-ratings-revises-outlook-on-yerevans-long-term-foreign-and-local-currency-issuer-default-ratings-to-positive-from-stable-and-affirms-idrs-at-b","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2023\/02\/28\/147592\/","title":{"rendered":"Fitch Ratings revises Outlook on Yerevan’s Long-Term Foreign- and Local-Currency Issuer Default Ratings to Positive from Stable and affirms IDRs at ‘B+’."},"content":{"rendered":"\n

YEREVAN, February 28, \/ARKA\/. \u00a0<\/strong>Fitch Ratings has revised the Outlook on the City of Yerevan’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Positive from Stable and affirmed the IDRs at ‘B+’.<\/p>\n\n\n\n

The revision of Outlook follows the recent similar action on Armenia’s sovereign ratings.<\/p>\n\n\n\n

Yerevan’s ‘Vulnerable’ risk profile is driven by five ‘Weaker’ key risk factors (revenue robustness and adjustability, expenditure adjustability, liabilities and liquidity robustness and flexibility) and one ‘Midrange’ factor (expenditure sustainability) in a country rated in the ‘B’ category or below.<\/p>\n\n\n\n

The assessment reflects Fitch’s view that there is a very high risk of the issuer’s ability to cover debt service with the operating balance weakening unexpectedly over the scenario horizon (2022-2026) due to lower revenue, higher expenditure, or an unexpected rise in liabilities or debt-service requirements.<\/p>\n\n\n\n

In its rating case, Fitch assumes that Yerevan will continue to draw down its European Investment Bank loan to the limit of EUR7 million.<\/p>\n\n\n\n

However, the city’s debt levels will remain moderate, with little impact on debt-sustainability metrics in 2022-2026. Fitch expects the city’s debt payback ratio – the primary metric of debt-sustainability assessment for Type B local and regional governments (LRG) – will remain strong at under 5x, which corresponds to a ‘aaa’ assessment. The latter is also supported by prudent secondary metrics. -0-<\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch Ratings has revised the Outlook on the City of Yerevan’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Positive from Stable and affirmed the IDRs at ‘B+<\/p>\n","protected":false},"author":1,"featured_media":203160,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[],"class_list":{"0":"post-147592","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-en","8":"category-news"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/147592","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=147592"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/147592\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/203160"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=147592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=147592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=147592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}