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--