On June 26, Moody’s credit rating agency reaffirmed the Government of the Republic of Armenia’s long-term issuer ratings denominated in local and foreign currency, as well as the senior unsecured foreign currency rating at the Ba3 level, maintaining the “stable” outlook.
The decision to maintain the Ba3 rating level is based on the stable growth potential of Armenia’s economy, as well as the moderately high level of institutional development and public administration efficiency.
At the same time, geopolitical risks continue to be the main factors exerting pressure on the rating.
The “stable” outlook by the international rating agency reflects a balanced view of the risks affecting Armenia’s credit profile. According to Moody’s, the country’s economic prospects may exceed current expectations due to more significant productivity growth. This, in turn, provides a basis for reducing the level of public debt and improving debt servicing capacity.
The agency’s forecast expects the country’s long-term economic growth to stabilize at around 5%, driven by increased investment in fixed capital and improvements in the quality of human capital.
