MOODY’S MAINTAINS ARMENIA’S SOVEREIGN RATING
ARKA
Dec 24, 2008
YEREVAN
The international rating agency Moody’s Investors Service has
maintained Armenia’s sovereign rating Ba2 "Stable Outlook", says
Moody’s annual report on the official website of the Central Bank of
Armenia (CBA).
Among the positive factors are a small national debt, prudent debt
management and minimal refinancing risks. According to the report,
a low level of economic and institutional development, along with a
centralized economic base and regional instability, remains the main
obstacle to further economic development.
A poor public revenue base remains Armenia’s main fiscal risk, which
is covered by expected competent debt management, Armenia’s good
relations with creditors and liquid assets provided by the Diaspora.
Among the obstacles are also the closed borders with Turkey and
Azerbaijan, which increases export and import costs. Low institutional
potential is also a deterrent, while the Armenian authorities are
well aware of the necessity to reduce corruption and create favorable
business environment for the purpose of long-term steady growth and
attract investments.
Moody’s Investors Service first assigned Ba2 local and foreign currency
ratings to the Armenian Government on July 24, 2006.