Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Armenia, Government of
Singapore, — Moody's Investors Service ("Moody's") reviews all of its ratings periodically in accordance with regulations — either annually or, in the case of governments and certain EU-based supranational organisations, semi-annually. This periodic review is unrelated to the requirement to specify calendar dates on which EU and certain other sovereign and sub-sovereign rating actions may take place.
Moody's conducts these periodic reviews through portfolio reviews in which Moody's reassesses the appropriateness of each outstanding rating in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1st January 2019, Moody's issues a press release following each periodic review announcing its completion.
Moody's has now completed the periodic review of a group of issuers that includes Armenia and may include related ratings. The review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future; credit ratings and/or outlook status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
The credit profile of Armenia (issuer rating of Ba3) reflects the country's "ba2" economic strength, which balances high growth potential and increasingly diverse growth drivers against the economy's small size and low income levels; its "baa3" institutions and governance strength, which takes into account improved credibility and effectiveness of macroeconomic policies and institutions that buffer the impact of economic shocks, as well as structural reforms aimed at strengthening the control of corruption and rule of law; the government's "b1" fiscal strength given its moderately high debt burden and high share of foreign currency debt; and "ba" susceptibility to event risks driven by geopolitical risk, which relates to a low probability, high impact scenario involving an escalation in tensions with Azerbaijan over the disputed territory of Nagorno-Karabakh to full scale hostilities.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Sovereign Ratings Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Nishad Harshit Majmudar AVP-Analyst/Manager 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
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