YEREVAN, MARCH 19, ARMENPRESS. Fitch Ratings has affirmed Armenia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+' with a Stable Outlook on March 19.

The Ministry of Finance of Armenia said that “given the macro-economic uncertainties conditioned by the current regional developments, the reaffirmation of the rating granted to Armenia by the agency is a very positive signal and proves the reliability of the reforms and especially the macro-economic policy being carried out by the authorities of Armenia”.

“Armenia's 'B+' IDRs reflect strong per-capita income, governance and business environment indicators relative to peers, as well as a robust macroeconomic and fiscal policy framework and credible commitment to reform, underpinned by IMF support. Set against these strengths are a high share of foreign-currency denominated public debt, relatively weak external finances, and geopolitical risks”, Fitch Ratings said in a statement.

According to the statement, Armenia will be adversely affected by spillovers from the crisis in Russia, given important linkages between the two economies, but Fitch presently expects that the sovereign's policy buffers, financing options, and long-dated commercial debt profile can help it navigate the shock without major impairment of repayment capacity.

Despite the current situation, Fitch forecasts some slowdown in Armenia’s economic growth for 2022, but says “growth will return to 4.2% in 2023 ('B' median: 3.6%), reflecting favourable domestic investment prospects and an expected positive contribution of net trade”.