Fitch affirms Armenia at B+: Outlook stable

 Fitch Ratings has affirmed Armenia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ with a Stable Outlook.

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, Fitch said in a statement.

Set against these strengths are a high share of foreign-currency denominated public debt, relatively weak external finances, and geopolitical risks, it said, adding that “Armenia will be adversely affected by spillovers from the crisis in Russia, given important linkages between the two economies.”

However, 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.

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