Moody's affirms Armenia's rating at Ba3, maintains stable outlook
01.09.2021 13:20
YEREVAN, SEPTEMBER 1, /ARKA/.Moody's Investors Service ("Moody's") has 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.
The affirmation of the Ba3 ratings is driven by the credit profile's resilience to the significant shocks of the coronavirus pandemic and geopolitical and domestic political tensions, and Moody's expectations that growth and fiscal strength will recover over the medium term. The fiscal profile in particular has proven resilient and will stabilize over the medium term, with debt consolidation expected from 2021 onward as growth and revenue rebound, and as the government adjusts expenditure downward in line with fiscal rules. Meanwhile, Moody's assesses that the 2020 ceasefire agreement with Azerbaijan and the June snap parliamentary election have reduced near-term political risks, supporting economic recovery and minimizing the impact to Armenia's fundamental growth outlook. External deficits drive currency valuation risks that can transmit to fiscal strength and financial stability, although external buffers have increased to withstand these potential shocks.
The stable outlook reflects balanced risks to the Ba3 rating. While a developing track record of policy effectiveness supports the development of a diversity of higher productivity sectors, growth potential remains constrained by demographic pressures and the small scale of the economy. Upside risk stems from more effective reforms that contribute to sustained growth at higher rates than Moody's currently assumes over the medium term. Event risk remains the key source of downside risk due to geopolitical tensions with neighboring countries, and external vulnerability and banking system risks resulting from the high share of foreign-currency debt, structural current account deficits, and a highly dollarized banking system.
Armenia's local and foreign currency country ceilings remain unchanged at Baa2 and Ba1, respectively. The four-notch gap between the local currency ceiling and the sovereign rating reflects a balance between the government's small footprint in the economy and strong institutions, and geopolitical tensions with neighboring countries and external deficits that expose the economy to external shocks. The two-notch gap between the foreign currency ceiling and the local currency ceiling incorporates Moody's assessment of Armenia's policy effectiveness and transfer and convertibility restrictions in times of stress. -0-
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Fitch rates Armenian city of Yerevan 'B+'; outlook stable
05.03.2021 22:49
Fitch Ratings said it has assigned the Armenian City of Yerevan Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of ‘B+’ with Stable Outlook
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Armenian dram remains stable, and financial sector displays high level of capital liquidity - WB
08.10.2020 12:18
The Armenian dram remains stable, and the financial sector displays a high level of capital liquidity, according to the World Bank’s report on the regional economic development of Europe and Central Asia, published on Wednesday
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Fitch downgrades Armenia to 'B+'; outlook stable
06.10.2020 18:05
Fitch Ratings has downgraded Armenia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘. The Outlook is Stable
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Araratbank board chairman: Armenian banking system is stable despite enormous stress
25.09.2020 21:32
Macroeconomic analysis shows that the impact of the coronavirus pandemic on Armenia’s banking sector was not as strong as expected, and the system itself turned out to be stable, Araratbank Board Chairman Grigor Hovhannisyan told reporters yesterday
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Armenian banking system is one of the most stable in the region
15.05.2020 18:18
Armenia’s banking system is one of the most stable in the region thanks to stringent regulatory standards, Mher Abrahamyan, Chairman of the Union of Banks of Armenia (SBA) said on may 14
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Fitch affirms ratings of ACBA-CREDIT AGRICOLE BANK and Ardshinbank at ‘B +’, revises outlooks to Negative from Stable
17.04.2020 10:56
Fitch Ratings has revised the Outlooks on ACBA-CREDIT AGRICOLE CJSC’s (ACBA) and Ardshinbank CJSC’s (Ardshin) Long-Term Issuer Default Ratings (IDRs) to Negative from Stable and affirmed the IDRs at ‘B+’, according to the agency’s press release
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Armenia's government debt structure remains stable with positive declining trend, Raex-Europe says
16.01.2020 14:40
Armenia’s government debt structure remains stable, RAEX-Europe said
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Moody’s changes outlook on Armenia’s rating to positive from stable; B1 rating affirmed
12.03.2018 18:40
Moody’s Investors Service (“Moody’s”) has changed the outlook on Armenia’s rating to positive from stable and affirmed the B1 long-term issuer and senior unsecured debt ratings
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Fitch affirms Yerevan’s IDR in foreign and national currencies at “B+”, “Stable” outlook
05.06.2017 17:05
Fitch Ratings has confirmed Yerevan’s long-term issuer default ratings (IDR) in foreign and national currencies at “B+” with “Stable” outlook and also short-term foreign currency IDR at “B”
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