YEREVAN, August 26. /ARKA/. On August 23, international credit rating agency S&P Global Ratings reaffirmed Armenia's long-term and short-term sovereign credit ratings in both foreign and local currency at "BB-/B." The agency also maintained its "stable" outlook for the country.

The stable outlook reflects a balance between Armenia's strong economic growth prospects and moderate levels of public debt, set against existing vulnerabilities in the balance of payments and elevated geopolitical risks, the agency reported.

The agency noted that a positive rating action could be considered if Armenia's public finances significantly exceed expectations or if the risk of a sudden reversal of Russian capital flows diminishes, thereby reducing potential pressure on the balance of payments. Additionally, a reduction in geopolitical risks would further support a positive rating action.

Conversely, a downgrade could be considered if substantial pressure on the balance of payments materializes, and fiscal performance falls significantly short of current projections. This scenario could arise from an escalation of geopolitical tensions with Armenia's neighbors or a reversal of financial and labor flows from Russia.