On Aug. 23, 2024, S&P Global Ratings affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Armenia. The outlook on the long-term ratings is stable, the Central Bank of Armenia reports.
Besides the statement reads: "We affirmed our 'BB-/B' long- and short-term sovereign credit ratings on Armenia. The outlook is stable."
The stable outlook reflects the balance between Armenia's strong economic growth prospects and moderate general government debt levels, against existing vulnerabilities in the balance of payments, and heightened geopolitical risks.
"We could consider a positive rating action if Armenia's public finances significantly outperform our expectations, or if the risk of a sharp reversal of Russian capital flows eases, thereby minimizing potential balance of payments pressure. Additionally, a reduction in geopolitical risks would further support a positive rating action," the statement reads.
The ratings are supported by Armenia's strong economic growth outlook, moderate government debt, access to external official funding, and a prudent policy framework, which has maintained economic and financial stability despite multiple external shocks.
