Moody's rates Armenia Ba2

Moody's Investors Service said it assigned Ba2 foreign and domestic currency ratings to the government of Armenia in light of the progress made by the country since 1995, the year that marked the end of the seven-year contraction that followed the collapse of the Soviet Union.

Armenia has been experiencing real gross domestic product growth rates of around 10% per year or above since 2001, while inflationary pressure have remained subdued due to the appreciation of the dram (the local currency) and to a cautious monetary and fiscal policy stance.

Moody's said that, over the medium term, there is sufficient scope for further gross domestic product growth such that it will help alleviate poverty and reduce unemployment, both of which remain high in Armenia. Moreover, the rating is supported by the limited level and favorable maturity structure of Armenia's foreign-currency denominated debt.

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