Consequences of the Crisis in Russia Will Negatively Affect Armenia, Says Fitch Ratings

Fitch Ratings, an international credit rating agency, has affirmed Armenia's long-term foreign-currency issuer default rating at 'B+' with a 'stable' outlook. According to Armenpress, the basis for maintaining the rating includes high per capita income, the quality of governance and business environment, a reliable framework for macroeconomic and fiscal policy, as well as a strong commitment to implementing reforms.

These strengths are contrasted by high external sovereign debt, relatively weak external finances, and geopolitical risks.

The international ratings agency forecasts that the consequences of the crisis in Russia will negatively impact Armenia, given the significant economic ties between the two countries. However, Fitch anticipates that funding options and a long-term commercial debt profile could help Armenia navigate the shock without serious deterioration in solvency.