Yerevan /Mediamax/. Fitch Rating Agency stated that the recent political turmoil in Armenia could threaten the positive outlook on the sovereign’s long-term issuer default ratings of BB- (BB minus), if unrest were to persist or intensify.

“The political unrest witnessed in Armenia over the past fortnight need not de-rail the country’s improving economic fundamentals,” said Andrew Colquhoun, Director in Fitch’s Sovereigns group.

“However, if the situation were to escalate or persist then it could risk damaging domestic and international confidence, and undermining the authorities’ focus on sound economic policy management,” Andrew Colquhoun added.

Fitch Ratings noted that in the course of the nearest days, the Constitutional Court of Armenia is set to rule on complaints against the handling of the elections in the next few days and “if the court upholds the results, adding to the qualified endorsement of the international community, there is a risk the opposition could resort to extra-legal action”.

“An escalation of violence would be strongly negative for Armenia’s basic political stability and sovereign ratings”, Fitch Ratings notes.