{"id":250039,"date":"2021-10-13T08:58:48","date_gmt":"2021-10-13T08:58:48","guid":{"rendered":"https:\/\/armbanks.am\/2021\/10\/13\/250039\/"},"modified":"2021-10-13T08:58:48","modified_gmt":"2021-10-13T08:58:48","slug":"standard-poors-sp-global-ratings-assigns-b-long-term-foreign-and-local-currency-sovereign-credit-ratings-to-armenia","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2021\/10\/13\/250039\/","title":{"rendered":"Standard & Poor\u2019s (S&P) Global Ratings assigns \u2018B+\u2019 long-term foreign- and local-currency sovereign credit ratings to Armenia"},"content":{"rendered":"\n

YEREVAN, October 13, \/ARKA\/.\u00a0<\/strong> On October 12, 2021, S&P Global Ratings assigned its \u2018B+\u2019 long-term foreign- and local-currency sovereign credit ratings to Armenia. At the same time, it assigned its \u2018B\u2019 short-term foreign- and local currency ratings. The outlook is positive. It also assigned its ‘BB-‘ transfer and convertibility assessment to Armenia.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

It says the positive outlook reflects the potential that implementation of the government\u2019s five-year program will generate faster growth, external deleveraging, and further improvements in the country\u2019s monetary policy framework.<\/p>\n\n\n\n

Outlook<\/p>\n\n\n\n

The positive outlook reflects also Armenia\u2019s 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.<\/p>\n\n\n\n

Upside scenario<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Downside scenario<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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

\u2018We also factor in the recent erosion of public finances, albeit with well-contained debt servicing costs. The ratings are supported by Armenia\u2019s 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.\u2019<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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-<\/p>\n","protected":false},"excerpt":{"rendered":"

On October 12, 2021, S&P Global Ratings assigned its \u2018B+\u2019 long-term foreign- and local-currency sovereign credit ratings to Armenia. At the same time, it assigned its \u2018B\u2019 short-term foreign- and local currency ratings. The outlook is positive. It also assigned its ‘BB-‘ transfer and convertibility assessment to Armenia<\/p>\n","protected":false},"author":1,"featured_media":157312,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[12139,9216],"tags":[15837,12351,15698],"class_list":["post-250039","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy-en","category-news","tag-armenia-2","tag-ratings","tag-sp-3"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t