Armenia, Government of — Moody’s assigns Ba3 rating to Armenia’s US dollar-denominated notes

Yahoo! Finance
Jan 26 2021
Tue, , 3:36 AM·14 min read

Rating Action: Moody's assigns Ba3 rating to Armenia's US dollar-denominated notes

Global Credit Research – 26 Jan 2021

Singapore, — Moody's Investors Service ("Moody's") has assigned a rating of Ba3 to the proposed senior unsecured, US dollar-denominated notes to be issued by the Government of Armenia. The notes will rank pari passu with all of the Government of Armenia's current and future senior unsecured external debt. The proceeds of the notes will be applied toward general governmental purposes.

The rating mirrors the Government of Armenia's long-term issuer rating of Ba3 with a stable outlook.

RATINGS RATIONALE

Armenia's Ba3 issuer rating is underpinned by its robust growth potential with increasingly diverse economic drivers and a lengthening track record of solid macroeconomic management, which raise the country's economic resiliency, and high debt affordability. Implementation of reforms has the potential to raise the quality and credibility of Armenia's institutions, although tangible effects will likely take time.

Balanced against these credit strengths are challenges stemming from the government's moderately high debt burden that is vulnerable to sharp currency depreciation, the small and low-income economy that is exposed to external developments, and latent geopolitical tensions with neighbouring Azerbaijan. These challenges have been amplified by the coronavirus pandemic, resulting in economic contraction in 2020. The high, albeit gradually declining, level of dollarisation in the economy also leaves Armenia and its banking sector exposed to external shocks, although the central bank has introduced measures that promote de-dollarisation.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

Upward pressure on Armenia's rating would stem from further reforms that were to raise economic competitiveness and institutional credibility and effectiveness beyond Moody's current expectations. This would in part materialise through greater levels of private investment and increased transparency of and trust in institutions, including in the judiciary. A structural narrowing of the current account deficit and improvement in Armenia's external position, including through higher competitiveness and foreign direct investment, would also contribute to upward pressure on the rating. An increase in government revenue arising from fiscal reforms beyond Moody's expectations, that would support the government's debt carrying capacity, would additionally put upward pressure on the rating.

Downward pressure on Armenia's rating would emerge if there was a loss of reform momentum, which would likely transpire through weaker confidence in institutions and fiscal slippage removing prospects that the government debt burden will decline over the medium term. An increase in external vulnerability risk, such as a sustained increase in current account deficits that resulted in declining foreign exchange reserve adequacy, would additionally contribute to downward pressure on the rating. A renewed escalation of the conflict with Azerbaijan over the Nagorno-Karabakh territory would also put negative pressure on the rating if it materially impacts economic or fiscal fundamentals.

This credit rating and any associated review or outlook has been assigned on an anticipated/subsequent basis. Please see the most recent credit rating announcement posted on the issuer's page on www.moodys.com, under the research tab, for related economic statistics included in rating announcements published after June 3, 2013.

This credit rating and any associated review or outlook has been assigned on an anticipated/subsequent basis. Please see the most recent credit rating announcement posted on the issuer's page on www.moodys.com, under the research tab, for related summary rating committee minutes included in rating announcements published after June 3, 2013.

The principal methodology used in this rating was Sovereign Ratings Methodology published in November 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1158631. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The rating has been disclosed to the rated entity or its designated agent (s) and issued with no amendment resulting from that disclosure.

This rating is solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1243406.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Nishad Harshit Majmudar AVP-Analyst Sovereign Risk Group Moody's Investors Service Singapore Pte. Ltd. 50 Raffles Place #23-06 Singapore Land Tower Singapore 48623 Singapore JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Marie Diron MD - Sovereign Risk Sovereign Risk Group JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 Releasing Office: Moody's Investors Service Singapore Pte. Ltd. 50 Raffles Place #23-06 Singapore Land Tower Singapore 48623 Singapore JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077

Competent state body of Armenia must publish the number of Armenian POWs – Ombudsman

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 10:02, 20 January, 2021

YEREVAN, JANUARY 20, ARMENPRESS. Human Rights Defender of Armenia Arman Tatoyan says the competent state body of Armenia must publish the number of prisoners of the Armenian side who, according to the information at its disposal or in its belief, are currently being held captive in Azerbaijan.

“The rule of the law presupposes the presumption of publishing any data of public importance. When rejecting the disclosure of given data, the state must show what legitimate interest it is pursuing. The state’s decision not to make a relevant disclosure must be grounded in reason.

The Armenian government official announced yesterday through a statement that it did not publish the data on the number of captives of the Armenian side in Azerbaijan, and by way of justification, in its official response, merely stated that the issue is one of a "super-sensitive nature." This is not an acceptable approach.

In fact, the publication of the number of captives held by the Armenian side in Azerbaijan will at least:

1) significantly increase international pressure on Azerbaijan to release and return the captives,

2) provide grounds for additional obligations of Azerbaijan,

3) increase the level of protection of prisoners held in Azerbaijan,

4) demonstrate publicly and emphasize the state's respect for the rights of prisoners and their families,

5) publicly emphasize the state's responsible attitude towards this issue of public importance, and

6) finally, through such a stance, the state will be eliminate or otherwise significantly reduce efforts and any attempts by either side to manipulate and mislead the public with false information.

Therefore, the competent state body of the Republic of Armenia must publish the number of prisoners of the Armenian side who, according to the information at its disposal or in its belief, are currently being held captive in Azerbaijan”, the Ombudsman said on Facebook.

Armenia remains at risk of becoming ‘theater of war’ in region, expert says

Panorama, Armenia
Jan 23 2021

The threats from the joint Turkish-Azerbaijani military exercises to be held in Kars early next month should not be downplayed, according to Armenian expert on Turkey Ruben Melkonyan.

"The drills have attracted opposing reactions. According to some claims, they don’t pose any threats, but I think it’s not a right approach. Others, including me, believe that Turkey and Azerbaijan are a threat not only to Armenia, but also to the entire region, including our strategic partner Russia. The steps of those states continue to pose threats to our statehood and our region," he told a news conference on Saturday.

In Melkonyan’s words, military exercises, preparation for military operations and other steps of these countries should be perceived as a potential threat.

"The specter of a great war is haunting our region, but it's not yet clear when the war will start and which big countries will become its targets, Iran or Russia, we'll have to see how things unfold. But in case of any scenario, Armenia remains a target. Armenia remains at risk of becoming a theater of war. We should not ignore all this," the expert said.

According to him, even though such military exercises are held regularly, they pose a clear threat, since they are carried out by the countries that continue to pursue aggressive policies. The problems in the region have not been completely resolved, Melkonyan said, adding the occupation of a part of Artsakh by Azerbaijan is not the end of a big war plan.

"Thus, we can assume that there is a possibility of renewed hostilities in the region," Melkonyan noted.

Mechanical approaches on determining state borders of Armenia should be simply ruled out – Ombudsman

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 12:06, 9 January, 2021

YEREVAN, JANUARY 9, ARMENPRESS. Mechanical approaches on determining the state borders of Armenia should be just ruled out, Ombudsman of Armenia Arman Tatoyan said in a statement.

“The livestock building belonging to Shurnukh village resident Styopa Movsisyan, which is adjacent to his house, has been divided into 2 parts – “Azerbaijani” and “Armenian”, as a result of the use of the Global Positioning System (GPS) or Google Maps.

Moreover, the state registration of the ownership rights to both the house and the livestock building has been approved by the certificates of the Cadastre Committee of Armenia.

We have tried several versions of Google Maps in the area of that house, and each version showed different results, including presenting Styopa Movsisyan’s house and the whole Shurnukh village as part of Armenia.

Unfortunately, today such stories are numerous. Such concrete examples prove that as a result of approaches used till this moment for determining the borders, as well as due to the mechanical use of GPS or Google Map, and especially in the case of property and several other rights the rights of the bordering residents of Armenia have been grossly violated. People are unable to use their property even having the ownership certificates.

Therefore, such mechanical approaches on determining the state borders of Armenia, the processes with such speed should be just ruled out”, the Ombudsman said.

According to him, professional approaches, research results, proper legal grounds are needed.

Editing and Translating by Aneta Harutyunyan

Outlook 2021: A preview from Central Asia and the Caucasus

EurasiaNet.org
Jan 3 2021
Peter Leonard, Joshua Kucera Jan 4, 2021

Asbarez: Armenia, Azerbaijan Security Chiefs Meet In Moscow

December 30,  2020



Alexander Bortnikov (right), the head of Russia’s Federal Security Service, hosts a meeting of his Armenian and Azerbaijani counterparts in Moscow on Dec. 28

YEREVAN (Azatutyun.am)—The heads of Armenia’s and Azerbaijan’s main security services have met in Moscow to discuss the implementation of the Russian-brokered agreement to stop the war in Nagorno-Karabakh, it emerged on Wednesday.

Armenia’s National Security Service (NSS) reported that the head of Russia’s Federal Security Service (FSB), Alexander Bortnikov, hosted a trilateral meeting with his Armenian and Azerbaijani opposite numbers on Monday.

An NSS statement said the three men discussed “a number of pressing issues, including the exchange of prisoners and the search for missing persons.”

The statement added that NSS Director Armen Abazian and the chief of Azerbaijan’s State Security Service, Ali Naghiyev, reached “understandings on works to be carried out in various directions.” It did not elaborate.

The FSB issued no statement on the meeting. Bortnikov visited Yerevan and Baku earlier in December.
The Moscow meeting took place amid Baku’s claims that Armenian troops attacked on Sunday an Azerbaijani army unit in Karabakh’s southern Hadrut district that was occupied by Azerbaijani forces during the six-week war. Azerbaijan’s Defense Ministry said one Azerbaijani and six Armenian soldiers were killed in the firefight.

Armenia’s Defense Ministry strongly denied the allegations, saying that Karabakh’s Armenian-backed Defense Army did not conduct any military operations or violate the ceasefire otherwise.
The Defense Army likewise insisted on Wednesday that “not a single gunshot” was fired by its troops in recent days. In a statement, it also argued that the scene of the alleged incident is located dozens of kilometers from the nearest section of the Armenian-Azerbaijani “line of contact.”

The Karabakh Armenian army said it is now examining videos posted on Azerbaijani social media accounts purportedly showing the six Armenians allegedly killed on Monday. It suggested that they may have been captured and executed earlier.

Armenia: Economic Activity Shrank 7.2% In January-November

Eurasia Review
Dec 27 2020

By PanARMENIAN

Economic activity in Armenia shrank by 7.2% in the first eleven months of 2020 year-on-year, data from the National Statistical Service reveals.

Economic activity in the country has contracted as a result of a lockdown imposed in mid-March in a bid to curb the Covid-19 outbreak, as well as the war in Nagorno-Karabakh.

In November alone, the economic activity contracted by 10.3% against the same period last year.

In January-November 2020, construction and trade declined by 11.2% and 13.5%, respectively, while the services sector shrank by 13.6%.

The National Statistical Committee also revealed that the country’s GDP in the third quarter of 2020 registered a preliminary decline of 9.1% year-on-year.


Armenia Ombudsman: Citizens’ call to threaten or use violence against pastor in Sisian is absolutely

News.am, Armenia
Dec 21 2020
 
 
Armenia Ombudsman: Citizens' call to threaten or use violence against pastor in Sisian is absolutely inadmissible
15:19, 21.12.2020
Human Rights Defender of Armenia Arman Tatoyan has issued the following statement:
 
“The calls and news of a group of people about the threats and violence against pastor of the St. Gregory the Illuminator Church of Sisian are absolutely inadmissible.
 
The monitoring conducted by the Office of the Human Rights Defender attests to the fact that this dangerous phenomenon has been recorded a few times in the past.
 
These manifestations must be immediately prevented. This is first and foremost dangerous from the perspective of tolerance and solidarity in society.
 
The Armenian Holy Apostolic Church has had and still has an exceptional mission in the lives of the Armenian people and for preservation of national identity. The Armenian Holy Apostolic Church has always played a role in human rights protection and in the establishment of an atmosphere for solidarity in the country.
 
It is the duty of state bodies to take immediate steps to verify the news and rule out any tension and especially any potential act of violence.
 
A little while ago, I talked to the Chief of Police of Armenia who fully assured me that the Police will urgently take the necessary steps to prevent tension or violence.”
 
  
 

​Armenian National Health Council issues statement ahead of march demanding Nikol Pashinyan’s resignation

News.am, Armenia
Dec 21 2020
 
 
Armenian National Health Council issues statement ahead of march demanding Nikol Pashinyan's resignation
21:15, 21.12.2020
 
The Armenian National Health Council of Armenia has issued the following statement:
 
“It has been over a month since they deprived us of a part of our homeland, our history of victories. They lied to us. The security of our homeland is at risk. Every day we hear news and see scenes that cause deep pain to each and every one of us.
 
Many Armenians say we have been defeated, but is it really worth only thinking about defeat? Isn’t it time to stand up and fight and restore dignity? How much longer must we live with a broken back and with loss of faith in the future and think that it is impossible to change anything? Perhaps it is possible to make a change.
 
It is possible, perhaps with small steps, by overcoming fears, but it is possible. Now is the time. The subsequent march demanding the resignation of Prime Minister Pashinyan kicks off tomorrow, on December 22 starting from 12:00 p.m. at Republic Square.”
 
 
 

Armenian church [in Jerusalem] leasing land to Israelis causes Palestinian worry

Arab News
Dec 19 2020
Palestinian demonstrators protest against the selling of church land to Israelis, in the West Bank city of Bethlehem. An unknown deal to turn the land into a parking lot is causing concern for the Palestinian leadership. (AP/File)

Armenian Patriarchate terms the deal as simply a financial operation and ‘not selling land’

AMMAN: A previously unknown agreement to turn sensitive land in the old city of Jerusalem into a parking lot — largely for the exclusive use of Jewish residents of the old city — is causing concern for the Palestinian leadership and members of the tiny Armenian community.

The contract, a copy of which is with Arab News, will take effect on Jan. 1, 2021.


 Officials of the Armenian Patriarchate confirmed the agreement but insisted that the contract with the Israeli Jerusalem municipality and the Jewish-centric Jerusalem Development Authority (Harali) does not constitute selling or leasing land but is simply a financial operation.


 The Armenian Patriarchate said that removal of all earth from the plot of land, which will cost about $2 million, was “a financial obligation that the Patriarchate by itself doesn’t have the capacity to undertake,” according to a statement by the real estate department of the Armenian Patriarchate. The statement said that efforts to get support from “multiple governmental bodies” had run “into obstacles.” In return, the municipality and Harali will have access to 90 parking spots.


 But the five-page contract notes (Article 2a) that the cost of lifting the rubble will be considered “a loan” that the church will have to pay back.


 The Higher Presidential Committee of Church Affairs in Palestine wrote to Armenian Patriarch Nourhan Manoogian reminding him that the Armenian quarter is part of occupied Palestinian territories where UN resolutions, including the 2017 UNSC Resolution 2334, apply. The letter also noted that the agreement between Jordanian King Abdullah and President Abbas in 2013 was set to regulate Christian and Muslim holy places in Jerusalem.


 The letter, signed by Ramzi Khoury, the director of the committee, called on the Armenian Patriarchate “to abide by international law” and said that Israel has “expansionist ambitions,” especially in the area of the Omar Bin Khatab Square and the Armenian quarters” in the old city. Palestinian sources have said that President Arafat refused to concede the Armenian quarter during the 2000 negotiations at Camp David.

The Higher Presidential Committee of Church Affairs in Palestine wrote to the Armenian Patriarch Nourhan Manoogian reminding him that the Armenian quarter is part of occupied Palestinian territories where UN Resolutions, including the 2017 UNSC resolution 2334, apply.

A well-respected Palestinian source from the Armenian community said that he “smells a rat,” adding that the current Armenian Patriarchate is not to be trusted. “I think that this is not the first time that the Armenian Patriarchate has tried to sell land and the people of Jerusalem to the Israelis and the people of the city stood up to him,” said the Palestinian leader, who spoke on condition of anonymity.


 The Palestinian/Armenian source denied claims that the church had no choice but to go to the Israelis after repeated requests for financial support from the Palestinian government and others were turned down: “This is not true. The EU was interested in fixing the parking lot in a way that would allow its parking lot income to support the church while allowing all the people of the old city to use it but the church refused the offer. A 10-point official statement issued by the real estate department of the Armenian Patriarchate states that the parking lot will remain private and that the management, ownership of the parking lot will remain in the hands of the Patriarchate.”


The statement also highlights that “within the next 10 years, once the Patriarchate has finalized and received all construction permits, in agreement with the municipality, the Patriarchate will begin a new construction that will benefit the Armenian community.” The Patriarchate is hoping to get permission to build a hotel.


 Armenian clergy have frequently complained about religious Jews spitting on them. In March 2020 the Israeli police, and for the first time since 1967, fined a young Jewish man 1,500 Israeli shekel ($463) for spitting at an Armenian bishop a year earlier.


 Palestinians have boycotted the “unified” Jerusalem municipality since 1967 and consider the Jerusalem Development Authority an arm of radical Jewish groups that intend to Judaize the old city of Jerusalem at the expense of the indigenous Arab Palestinians.


https://www.arabnews.com/node/1779856/middle-east