YEREVAN, February 26. /ARKA/. S&P Global Ratings Services has affirmed the sovereign ratings of the Republic of Armenia's long-term/short-term foreign and local currency issues at "BB -"/"B", keeping the "stable" outlook unchanged, the press service of the Ministry of Finance reported.

On August 25, 2023, S&P Global Ratings raised Armenia's long-term foreign and local currency sovereign credit ratings to "BB-" from "B+" and affirmed short-term foreign and local currency sovereign credit ratings at "B" with "Stable" outlook.

S&P Global Ratings said the rating affirmation is based on the country's strong economic growth prospects, consistent availability of external financing and a framework of prudent macroeconomic policies, which has helped maintain the country's macroeconomic and financial stability in recent years despite numerous external shocks.

The stable outlook reflects, on the one hand, Armenia's favorable economic growth prospects and the government's maintenance of public debt at a stable and manageable level, and on the other hand, the existing external balance of payments and geopolitical risks.

S&P Global Ratings said the challenges to Armenia's economy are related to the flows of forcibly displaced persons from Nagorno-Karabakh and migrants from the Russian Federation, as well as regional geopolitical uncertainty.

It is noted that in the absence of rising geopolitical tensions, Armenia's economic prospects remain strong, reflecting higher labor productivity, mainly due to capital and labor inflows into the IT sector. -0-