Yerevan, May 3 /Mediamax/. Fitch Ratings Agency revised the outlook on Armenia’s foreign and local currency issuer default ratings to “Positive” from “Stable” and affirmed the ratings at “BB-” (BB minus).

Fitch also affirmed the country ceiling at “BB” and the short-term foreign currency rating at “B”.

The “Positive” outlook mirrors the expectations that disciplined macroeconomic policies and structural reforms will be continued in Armenia and it will assist the constant economic growth and the decrease of state and external debt burden.

At the same time, Fitch experts note that Armenian policymakers face significant challenges in sustaining strong and balanced economic growth against the backdrop of strong upward pressures on the exchange rate, rapid expansion of private credit and construction activity, while also anchoring inflation expectations under the recently introduced direct inflation targeting regime.

Fitch said upcoming parliamentary elections and presidential elections in 2008 could potentially complicate macroeconomic policy management, although it does not expect any material impact to economic or foreign policy.

Mediamax reminds that Fitch affirmed Armenia the sovereign credit rating BB- (BB minus) with stable outlook in the beginning of 2006.