Economy 18:59 12/03/2018 Armenia

Moody's changes outlook on Armenia's rating to positive from stable

Moody's Investors Service ("Moody's") on Friday changed the outlook on Armenia's rating to positive from stable and affirmed the B1 long-term issuer and senior unsecured debt ratings.

The positive outlook signals that a rating downgrade is unlikely over the next 12-18 months. It is underpinned by macroeconomic policies that should reduce Armenia's vulnerability to external shocks. Moreover, ongoing reforms of the fiscal framework may shore up fiscal strength over time.

Armenia's B1 rating balances credit strengths from robust growth potential and improving institutional strength against credit challenges stemming from a small and low income economy that remains exposed to external developments, a moderately high debt burden that relies on external funding, and latent geopolitical tensions with neighbouring Azerbaijan.

Moody's has also raised Armenia's long-term local-currency bond and deposit ceilings to Baa3 from Ba2. Armenia's long-term and short-term foreign currency bond and deposit ceilings remain unchanged at Ba2/"Not Prime" and B2/"Not Prime", respectively.

Moody's has also pointed out the risky factors that served as a basis to leave the country’s rating unchanged and changing the outlook on Armenia's rating to positive from stable.

The service mentions the following as positive factors: high, although fluctuating, GDP growth, strengthening institutions implementing macroeconomic stability assistance policies, a high level affordability of the state debt due to the great share of privileged loans. 

Moody's says upward pressure on Armenia's rating would stem from further economic and/or institutional reforms that point to sustained improvements in economic competitiveness and institutional strength. Taking into account the government's fiscal plans, Moody's expects the government's fiscal deficit to narrow to 2.6% of GDP in 2018 and 2.5% in 2019, from 4.7% in 2017. Moody's also expects Armenia's general government debt to gradually decline to 56.5% of GDP by end-2018 and 54.2% by end-2019.



Source Panorama.am
Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:

Newsfeed

20:29
Mkhitaryan: ‘Five wins in Europe’
Armenian national football team and Arsenal midfielder Henrikh Mkhitaryan has made a post on Facebook after the London club’s Europa...
20:14
French police prepare for fifth wave of yellow vest protests
France will deploy tens of thousands of police nationwide and around 8,000 in Paris on Saturday to handle a fifth weekend of ‘yellow...
20:07
Wool processing plant to be commissioned in Armenia’s Amasia in early 2019
Acting Prime Minister of Armenia Nikol Pashinyan hosted today Ambassador Extraordinary and Plenipotentiary of the Czech Republic to the Republic...
19:57
Artsakh bakes record-long traditional bread
Longest-ever Jengyalov hats, a traditional type of flatbread stuffed with finely diced herbs and green vegetables, with a weight of 20 kg 885...
19:30
Lukashenko: Serzh Sargsyan refused to return five regions to Azerbaijan
Belarus President Alexander Lukashenko reflected on the Nagorno-Karabakh (Artsakh) conflict settlement, recalling the proposals that Belarus and...
18:50
Lars open only for light passenger vehicles
Stepantsminda-Lars highway is open only for light passenger vehicles as of 5:30pm Friday, the Armenian Embassy in Georgia told the Ministry of...
18:41
Pashinyan: Peaceful resolution of Karabakh conflict remains top priority for us
The peaceful settlement of the Nagorno-Karabakh (Artsakh) conflict remains a top priority for Armenia, Acting Prime Minister Nikol Pashinyan...
18:32
Kocharyan’s lawyers say received arrest ruling, will appeal it to higher courts
The defense lawyers of Armenia’s second President Robert Kocharyan say that they have received the Yerevan appellate court ruling on...
18:03
Istanbul hosts first-ever Parajanov exhibition
The first ever-exhibition dedicated to Sergei Parajanov, a world-renowned Armenian director, artist and scriptwriter, has opened in Istanbul,...
17:31
Yerevan court rejects motion to arrest ex-deputy PM
The Yerevan Court of General Jurisdiction turned down today the motion of investigators to arrest former Deputy Prime Minister, former Secretary...
17:07
Lavrov: Russia expects renewed Karabakh talks after formation of Armenian government
Russia expects renewed negotiations on the Nagorno-Karabakh (Artsakh) conflict after the formation of the new government in Armenia based on the...
16:15
Nancy Wilson, legendary jazz singer, dead at 81
Nancy Wilson, a three-time Grammy-winning American artist who called herself a "song stylist," has died, CNN reports, citing her...
16:04
Lukashenko apologizes to Pashinyan for ‘attacking’ him at EAEU summit
President of Belarus Alexander Lukashenko has revealed some details of the hot discussions which took place during a recent summit of the...
15:22
Artsakh’s ex-defense minister named new head of emergency situations service
Artsakh Republic President Bako Sahakyan signed today a number of decrees and approved the government resolutions on cadre issues, his office...
14:49
Pashinyan offers condolences to Macron following Strasbourg terror attack
Acting Prime Minister of Armenia Nikol Pashinyan has addressed a message of condolences to French President Emmanuel Macron on the terror attack...
13:45
Teresa May returns from Brussels, no-deal Brexit looks likelier than ever – CNN
British Prime Minister Theresa May has returned from Brussels empty-handed, The CNN reported. According to the source, European Union...
13:14
Artsakh president introduces new Commander of the Artsakh Defense Army – media report
Artsakh Republic President Bako Sahakyan introduced new Commander of the Artsakh Defense Army, the 5th Chanel reported from Stepanakert....
12:51
Armenia’s Human Rights Defender visited Robert Kocharyan in detention
Armenia’s Human Rights Defender Arman Tatoyan visited Robert Kocharyan, the country’s former president, who is currently under...
11:55
Arsenal fan invaded pitch with Artsakh flag during the Europa League match
Arsenal fan invaded the pitch of a UEFA Europa League group-stage match between Arsenal and Azerbaijani Qarabag at the Emirates Stadium on...
11:22
CSTO acting secretary general congratulates Nikol Pashinyan
Acting Secretary General at Collective Security Treaty organization (CSTO) Valery Semerikov sent a congratulatory message on Thursday to Nikol...
10:26
Strasbourg terrorist killed by police
The suspect sought in Tuesday's Christmas market terror attack in Strasbourg was killed by French police tonight. Cherif Chekatt, a...
10:09
Some roads difficult to pass in Armenia
Armenia’s ministry of emergency situations (MES) reports there are some roads difficult to pass in the territory of Armenia as of 08:00...
20:31
London Classic: Aronian close, but classical games all drawn
Armenian grandmaster Levon Aronian played the second draw with Maxime Vachier-Lagrave on the second day of the London Chess Classic. The...
20:18
One died, 15 injured in15 traffic accidents in Armenia over the past day
According to the operations reports of Police of Armenia, 39 cases of crime were detected by officers of various police subdivisions in the...
20:12
Gymnast Artur Davtyan Voronin Cup’s winner
Armenia’s gymnastics team member Artur Davtyan triumphed at the 25th Mikhail Voronin Cup underway in Moscow, Russia. Scoring 84,500 at...
20:06
Analyst explains CIS leaders’ non-reaction to Pashinyan’s victory by Kocharyan’s arrest
Analyst Stephan Danielyan suggests the absence of congratulations from CIS and CSTO leaders to Nikol Pashinyan on the victory in early...
19:17
No Armenians suffered in Turkey train crash – foreign ministry
No Armenians or citizens of Armenia have suffered in the train crash in Turkish capital Ankara, the country’s foreign ministry reported on...
19:10
Nikol Pashinyan, Saad Hariri had a phone conversation
Lebanese Prime Minister Saad Hariri congratulated acting Prime Minister of Armenia Nikol Pashinyan on the victory of My Step Alliance at the...
18:19
Turkey remains the world’s worst jailer of journalists - CPJ report
Turkey, China, and Egypt are responsible for more than half of the jailed journalists around the world for the third year in a row, according to...
17:27
Train wagons turned over on Kars-Akhalkalaki railway
Train wagons turned over on Kars-Akhalkalaki railway in the Satkha - Ninotsminda section, Vahagn Chakhalyan, chairman of “United...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}