Fitch Confirms Armenia’s Ratings At BB, Outlook Stable

FITCH CONFIRMS ARMENIA’S RATINGS AT BB, OUTLOOK STABLE

YEREVAN, August 20. /ARKA/. Fitch Ratings has affirmed Armenia’s
Long-term foreign and local currency Issuer Default Ratings (IDR) at
‘BB-‘, Outlook Stable, according to the agency’s report.

The Country Ceiling has been affirmed at ‘BB’ and the Short-term
rating at ‘B’, Novosti-Armenia reported referring to RIA Novosti.

“Armenia’s rating is supported by a relatively strong macroeconomic
framework and a good inflation track record in comparison with the
peer group of ‘BB’ rated sovereigns”, says to the report.

The consolidated general government deficit fell to 1.4% of GDP in
2012, down from 2.8% of GDP in 2011, outperforming the target for
the second successive year, according to the report.

The government succeeded in meeting its goal of increasing
tax revenues, although under-execution of capital spending
also contributed, by 1.2pp of GDP. The deficit will increase
again in 2014 due to the costs of introducing a pension reform,
estimated at 0.5% of GDP in the first year. General government
debt rose 1.8pp of GDP to 44.1% of GDP in 2012, but Fitch expects
it to stabilise from 2013 onwards. Growth slowed in Q213,
but Fitch expects it to reach 5% in 2013-15, higher than its
previous forecasts,” the statement reads.-0– – See more at: