Fitch Ratings has affirmed Armenia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at “B+” and with a Stable Outlook.

“Armenia's 'B+' IDRs reflect strong per-capita income, governance and business environment indicators relative to peers, as well as a robust macroeconomic and fiscal policy framework and credible commitment to reform, underpinned by IMF support,” Fitch explained.

“Set against these strengths are a high share of foreign-currency denominated public debt, relatively weak external finances, and geopolitical risks,” it added.

Fitch has upped its real GDP growth projections for Armenia to 6.4% for 2022, and it expects this growth will average 4.7% in 2023-24.

“Relations with Azerbaijan have worsened in recent months, (…) although Fitch does not presently expect this will have broader macroeconomic implications [on Armenia],” Fitch Ratings added.