In a report published today, Fitch Ratings Agency has reaffirmed Armenia's Long-Term Foreign-Currency Issuer Default Rating at 'B+' with a Stable Outlook.
Taking into account the macroeconomic uncertainties due to the current regional realities, the reaffirmation of the rating assigned to Armenia by the Agency is a very positive signal and proves the reliability of the reforms and especially the macroeconomic policy carried out by the Armenian authorities.
In particular, the Agency clarified that the maintenance of the rating reflects strong per-capita income, governance and business environment indicators relative to peers, and the assessment is based on a robust macroeconomic and fiscal policy framework of Armenia and credible commitment to reform.
According to the Agency, Armenia’s economy will be adversely affected by the Russian-Ukrainian conflict, given important linkages between the economies of the Russian Federation and the Republic of Armenia. Nevertheless, the Agency estimates that the RA Government’s and the Central Bank's capacity to respond to shocks and the ability to attract financial resources can help Armenia navigate the economic challenges without major impairment of repayment capacity.
Despite the current situation, the Agency predicts a certain slowdown in economic growth in Armenia in 2022, the report records its forecasts for the recovery of economic growth in 2023.
The Agency also records the fact of political stability and confirms that the re-elected government in 2021 is strengthening its gains. The report states that although governance indicators remain worse than peer medians, Armenia substantially outperforms rating peers on human development and ease of doing business indicators.