S&P revises Armenia’s outlook to Positive, affirms ‘BB-’ rating

(Horizon Weekly / YEREVAN) — S&P Global has upgraded Armenia’s sovereign outlook from “stable” to “positive,” while reaffirming the country’s long-term foreign currency rating at “BB-,” according to an announcement by the Ministry of Finance.

The move follows a similar outlook improvement by Fitch Ratings, underscoring what officials describe as sustained international confidence in Armenia’s economic trajectory.

In its assessment, S&P noted the prospect of a more stable regional environment, particularly amid ongoing normalization efforts between Armenia and Azerbaijan. The agency also highlighted Armenia’s solid economic growth prospects, increased international reserves and the country’s capacity to withstand external pressures, supported by a flexible exchange rate regime.

The rating continues to reflect the government’s prudent fiscal management, efforts to mitigate structural risks and relatively strong foreign currency buffers.

A “positive” outlook signals a meaningful possibility that Armenia’s sovereign rating could be upgraded in a future review if current trends are maintained.