"Standard and Poor's" rating agency has confirmed Armenia's sovereign "B+" rating, changing the outlook from "stable" to "positive".
According to the monitoring of Standard and Poor's agency, the revision of the rating perspective is due to the high growth rates of the Armenian economy and the prospect of improving the economic potential, the significant improvement of the state budget indicators, the state debt burden and the external position of the economy, which was also contributed by the significant influx of people and capital as a result of the Russian-Ukrainian conflict.
The current rating is positively influenced by the availability of external official financing sources and a reasonable macroeconomic policy framework, which has helped maintain economic and financial stability amid numerous external shocks in recent years.
According to the agency's assessment, in the coming months, in case of a high level of economic growth, as well as the manageability of risks related to fiscal policy, balance of payments and financial stability, Armenia's sovereign rating will be subject to increase.
Moreover, the importance of the reserve (preventive) program implemented with the International Monetary Fund is also emphasized in that case.
In case of global uncertainties, the 12.6% economic growth of Armenia in 2022 received special attention from the agency, as well as a significant reduction in the Government Debt/GDP ratio, which was largely due to high economic growth, lower than planned budget deficit and dram appreciation against the US dollar. Moreover, according to the agency's assessment, the economic growth potential will increase in the coming years, and the debt burden will remain at a stable and manageable level.
The agency has called attention also to Armenia's lack of significant dependence on the impact of high international energy prices, noting the existence of long-term natural gas supply contracts with the Russian Federation.