Moody’s Armenia upgrade to enable Eurobond placement in int’l market at lower prices, says CBA VP

YEREVAN, AUGUST 29, ARMENPRESS. Thanks to Moody’s upgrade of Armenia’s sovereign rating Armenia will have the chance to place Eurobonds at more lower prices in the international market and subsequently save millions of dollars, according to Central Bank Vice President Nerses Yeritsyan.

According to Yeritsyan since 2006 the decline of Armenia’s rating was associated with the economy having gained great dependence from transfers and was vulnerable from external shocks coming from Russia. Moody’s has recorded that Armenia’s resistance against dependence from transfers and external shocks from Russia have increased, emphasizing the diversification of the economy and initiatives of international private companies in the high tech sector.

Moody's has concurrently raised Armenia's long-term local currency bond and deposit ceilings to Baa2 from Baa3. The long-term foreign currency bond ceiling and long-term foreign currency deposit ceiling have also been raised to Ba1 from Ba2 and B1 from B2, respectively.

Yeritsyan said that the upgrade will enable to decrease the prices of Eurobonds issued in the international market, leading to increase in savings.

The CBA Vice President said the rating can be improved even more in the future if the government continues implementing the anti-corruption and judiciary reforms.

Edited and translated by Stepan Kocharyan