Reforms Contributed to Upgrade of Armenia’s International Ratings

YEREVAN, July 4. /ARKA/. The upgrade of Armenia’s ratings is connected
with reforms being implemented by the country’s Government, Director
General of Armenian Development Agency Robert Harutyunyan said in an
interview with ARKA News Agency on Friday.

Fitch Ratings agency has upgraded Armenia’s long-term foreign and local
Issuer Default ratings (IDRs) to `BB’ from `BB-‘ (BB minus). The
Outlooks have been changed from Positive to Stable. The agency has also
upgraded the Country Ceiling to `BB+’ from `BB’ and affirmed the
Short-term IDR at `B’, says the Fitch report on Armenia.

Speaking about the risks Fitch agency pointed out in its report,
Harutyunyan said that they should be viewed properly. He said that
certain steps should be taken.

`It is obvious that Armenian authorities are gauging risks and trying
to minimize them to avoid risk development’, he said.

Fitch specialists say the risk of economy overheating runs high as
economy and incomes grow and macroeconomic policy tightens.

They say political risk that loomed large after presidential election,
post-election developments and brutal quelling of civil unrest hurt the
country’s solvency.

Now tension eased and the Government promises to implement some
structural reforms for solving social problems. Armenia’s political
risk doesn’t exceed rating category `BB’.-0—