Azerbaijan Business Center
Aug 24 2012

Fitch does not expect worsening of Garabagh conflict

Baku, Fineko/abc.az. Fitch Ratings, which affirmed yesterday Armenia’s
Long-term foreign and local currency Issuer Default Ratings (IDR) at
‘BB-‘, indicated as always the factors of reduction of this country’s
rating with stable outlook on the Long-term IDRs.

The Agency thinks that policy Armenia follows will be most likely
continued after presidential elections in February 2013. Fitch
believes President Serzh Sargsyan is likely to win a second term,
assuming he stands again.

`The improved conduct of parliamentary elections in May 2012, which
gave the ruling Republican Party an enhanced majority, suggests that
the result will be broadly accepted, averting the risk of a disputed
result and violence, as seen in 2008. Political unrest, triggered by a
disputed presidential election in February 2013, or worsening tensions
with Azerbaijan surrounding Nagorno-Karabakh – neither of which are
part of Fitch’s core forecast – could lead to negative rating action,’
the Agency stated.

At the same time, Fitch has affirmed the Short-term foreign currency
IDR at ‘B’ and Country Ceiling at ‘BB’.

It should be noted that as a result of Nagorno Garabagh conflict,
Armenia has occupied 20% of Azerbaijan’s territory and turned 1
million people of different nationalities (Azerbaijanis, Kurds, and
Russians) into refugees.

From: Emil Lazarian | Ararat NewsPress