The international credit rating agency Fitch Ratings has upgraded Armenia's long-term Issuer Default Rating (IDR) in foreign currency to "BB-" from "B+." The rating outlook is stable, says the agency's press release.

The upgrade is said to be based on a number of key factors, among which Fitch highlights robust economic growth. Thus, the agency predicts that Armenia's GDP will increase by 7.2% in 2023, by 5.9% in 2024, and by 4.5% in 2025.

“Armenia has had a strong rebound from successive shocks in recent years since its downgrade in 2020, and Fitch expects this dynamism to continue in light of an extraordinary inflow of migrants,” the agency writes.

Also among the factors is a significant decrease in the ratio of Armenia's public debt to GDP - last year it decreased by 46.7% from 60.2% in 2021, which was facilitated by the strengthening of the currency. In 2023-2025, the agency predicts the stabilization of the indicator at the level of 44.6%.

A negative rating action could follow if the public debt-to-GDP ratio rises significantly, and if geopolitical risks undermine the country's economic growth and financial stability. Increased confidence in the sustainability of economic growth and a marked reduction in geopolitical risks could lead to a positive rating action.