S&P affirms Armenia's rating with a positive outlook

S&P Global Ratings has affirmed Armenia's long-term sovereign credit rating at 'BB-' and short-term rating at 'B'. The outlook on the long-term rating remains positive.

According to the agency, the positive outlook reflects the possibility that Armenia will continue to accumulate foreign currency reserves and make progress in normalising relations with Azerbaijan. This would gradually reduce balance-of-payments vulnerabilities and geopolitical risks.

S&P cites as constraining factors the persistent, though moderating, security risks, evolving institutions and moderate income levels.

A positive outlook means the rating may be raised if these trends continue.