SP reaffirms Armenia's sovereign credit ratings with stable outlook

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YEREVAN, August 26. /ARKA/. On August 23, international credit rating agency SP Global Ratings reaffirmed Armenia's long-term and short-term sovereign credit ratings in both foreign and local currency at BB-/B. The agency also maintained its stable outlook for the country./pp

The stable outlook reflects a balance between Armenia's strong economic growth prospects and moderate levels of public debt, set against existing vulnerabilities in the balance of payments and elevated geopolitical risks, the agency reported./pp

The agency noted that a positive rating action could be considered if Armenia's public finances significantly exceed expectations or if the risk of a sudden reversal of Russian capital flows diminishes, thereby reducing potential pressure on the balance of payments. Additionally, a reduction in geopolitical risks would further support a positive rating action./pp

Conversely, a downgrade could be considered if substantial pressure on the balance of payments materializes, and fiscal performance falls significantly short of current projections./p br br