On August 25 Standard & Poor’s Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Armenia to 'BB-' from 'B+' and affirmed its short-term foreign and local currency sovereign credit ratings at 'B'. The outlook is stable.

Armenia's transfer and convertibility assessment has also been revised to 'BB' from 'BB-'.

It is noted that economic pressures related to the Russia-Ukraine war have led to a significant influx of Russian labor and capital to Armenia, boosting Armenia’s real GDP growth and bolstering its fiscal and external metrics.

“Armenia's GDP growth and fiscal and external metrics were already improving before the conflict, and we believe real GDP growth will remain relatively strong over the next few years,” the report says.