Fitch upgrades Armenia

Fitch Ratings said it upgraded Armenia’s long-term foreign-currency issuer default rating to BB- from B+.

“The majority government under Prime Minister Nikol Pashynian has demonstrated its commitment towards a stable macroeconomic policy agenda and to the implementation of structural reforms, including the fight against corruption and monopolies and enhanced institutions and governance,” said Fitch in a press release.

In addition, inflation has stayed below the Central Bank of Armenia’s 4% target. “The CBA cut its refinancing rate by a cumulative 50 bp in 2019 to 5.5%, after keeping rates stable since February 2017. Fitch expects inflation to pick up to 2.5% in 2020 and 3.3% in 2021, from 1.7% in 2019, supported by a more expansionary monetary policy,” the agency said.

Fitch said it also is more confident in the government’s commitment to cut its debt. “The fiscal deficit is on track to be better than budgeted at a projected 1% of GDP in 2019, versus 2.2% in the 2019 state budget and well below the current BB median of 3%,” the agency said.

The agency, however, does see the fiscal deficit widening to 2.2% next year and 2.1% in 2021.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.