Rating-Agentur Expert RA GmbH (RAEX-Europe) published the report on the confirmation of Armenia’s ratings.

RAEX-Europe confirmed the sovereign government credit rating (SGC) of Armenia at ‘BB-’ (Sufficient level of creditworthiness of the government) in national currency and at ‘BB-’ (Sufficient level of creditworthiness of the government) in foreign currency.

The rating outlook is stable which means that in the mid-term perspective there is a high probability of maintaining the rating score.

The full report is available here.

“The confirmation of Armenia’s ratings at ‘BB-’ with a stable outlook is underpinned by a strong and resilient banking sector, consistent and solid economic growth, effectiveness of the monetary policy and improving fiscal consolidation efforts by the authorities.

However, the creditworthiness of the sovereign remains constrained by high levels of financial dollarization, elevated government debt levels and high exposure to potential external shocks given the country’s high dependence on remittances, imports and commodities’ exports. Moreover, even though we consider that the recent political turmoil will not have a material impact on the long-term creditworthiness, it could hurt investor confidence adversely affecting investment in the economy”, said Hector Alvarez, Rating Associate of Rating-Agentur Expert RA GmbH.
 
RAEX-Europe is an independent European rating agency affiliated with the international group of rating agencies RAEX. Since 2015, the Agency has been accredited by the European Regulator for Securities and Markets (ESMA).