Moody’s expects Russia GDP to influence Armenia’s credit rating

Russia’s GDP will decrease by 5.5% in 2015 which in turn will negatively influence Armenian economy, experts from Moody’s Investor’s Service said in their report published Thursday. The statement on the official website came as the service downgraded Armenia’s issuer and bond rating to Ba3 from Ba2, and changed the outlook to negative from stable, TASS reports.

“Moody’s expects that Russia’s GDP will contract by 5.5% in 2015, weakening Armenia’s economic activity given its historically strong correlation with Russia’s growth cycle via remittances and trade channels, with Russia accounting for 23% of total Armenian exports,” the statement said.

The agency experts believe that «the impact of Russia’s economic downturn on Armenia’s economy will be more significant than currently expected.”.

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