MARKET OF RATING ACTIVITIES FORMS IN ARMENIA

Noyan Tapan
Jun 22 2007

YEREVAN, JUNE 22, NOYAN TAPAN. The entrance of Global Rating Group
into the Armenian market is more than important as it opened AmRating
agency in the country. So not only Armenian financial organizations but
also enterprises of other sectors have got the opportunity to receive
a rating from an Armenian rating agency, while AmRating will have a
relative advantage over the agencies not having their subdivisions in
Armenia. Chairman of the Central Bank of Armenia (CBA) Tigran Sargsian
expressed this opinion on June 22 at the press conference held on
the occasion of assigning a rating to Araratbank by Global Rating.

To recap, three Armenian banks have already received ratings from
Fitch and Moody’s rating agencies. Armenia as a state has also recived
a rating from these agencies.

Responding to NT correspondent’s question, T. Sargsian noted that the
entry of OMX AB company, a stock exchange operator, will be conducive
to the formation of a rating market in Armenia because in this case the
companies to have received a rating will have greater opportunities
for listing thier shares in line with international standards on the
stock exchange.

The CBA chairman explained that in determining the price of their work,
rating agencies take into account the living standard in the country
where the entity to be rated is operating. It is the rating agency that
offers the entity to receive rating. On the other hand it is expedient
that in order to increase the trust of investors and customers, the
economic entity use services of several rating agencies as it was
done in case of Armenia. He added that the possibility of Armenia’s
being asigned rating of Standarten & Poors is now under discussion.