MOODY’S REVISES ARMENIA CREDIT OUTLOOK UP TO STABLE

Reuters
Aug 20 2013

NEW YORK | Tue Aug 20, 2013 4:13pm EDT

NEW YORK Aug 20 (Reuters) – Moody’s Investors Service on Tuesday
revised upward its sovereign credit outlook for Armenia to stable from
negative, citing the government’s commitment to fiscal consolidation
and expectation for a further reduction in its current account deficit.

The Caucasus country’s speculative grade credit rating of Ba2, which
is two notches below investment grade, was affirmed, the ratings
agency said in a statement.

Armenia’s still large current account deficit of 11.1 percent of gross
domestic product in 2012 is expected to gradually narrow in size,
Moody’s said.

The country is emerging as a key transit route for oil and gas exports
from the Caspian Sea, although it has no pipelines of its own.

The government plans to raise $500 million from its first Eurobond
issue, expected this year, the government said in May. The money will
be used to help repay debt owned to Russia.

Another driver for Armenia’s outlook revision, Moody’s said, was
Armenia’s continued access to external funding sources on favorable
terms, “including via private remittances, foreign direct investment
(FDI) and official lending sources.”

From: Emil Lazarian | Ararat NewsPress