Moody’s Investors Service lowered its foreign-currency bond ceiling on Armenia, citing the country’s low institutional strength and limited financial and trade openness.

Now the highest rating that can be assigned to a domestic issuer in foreign currency in Armenia is Ba1, down from Baa3.

Moody’s said its foreign-currency bond ceiling assesses the probability that a defaulting government would adopt a moratorium on foreign-currency debt repayments of domestic issuers.

The move comes a day after Armenia sold a $700 million, seven-year bond to price at a yield of 6.25%, attracting $3.25 billion in orders, according to The Wall Street Journal. It was the country’s first dollar bond.

Moody’s said it would likely reassess Armenia’s bond ceilings if the country’s debt rating were to change.

Moody’s in August raised its outlook on Armenia’s junk-level ratings to stable, citing the nation’s efforts to cut deficits as well as its continued access to external funding sources on favorable terms. The firm at the time also reaffirmed Armenia’s Ba2 rating, two levels into junk territory.