Moody’s lowers ratings of Armenian government bonds from Ba3 to B1

YEREVAN, MARCH 21, ARMENPRESS. Moody's Investor Service downgraded the ratings of issuers and government bonds of Armenia from Ba3 to B1: As "Armenpress" reports, citing the official website of the agency, the rating changed from negative to stable.

Moody’s lowered ratings for national currency bonds and deposits rating from Ba1 to Ba2, long-term deposits in foreign currency from B1 to B2. At the same time ratings for foreign currency bonds and short-term deposits remained unchanged `Ba2 / NP:

Main reasons for this change are mentioned to be Armenia’s vulnerability to external factors, reduction of remittances from Russia, the uncertain outlook for foreign direct investment, increase sensitivity to exchange rate changes and the pressure on foreign exchange reserves.

The agency also stresses that additional risks for Armenia's economic growth are created also due to the geopolitical situation, especially the Nagorno-Karabakh conflict.