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Fitch ratings confirmed Armenia's long-term foreign and local currency IDRs
YEREVAN, August 2. / ARKA /. Fitch Ratings has affirmed Armenia's
Long-term foreign and local currency Issuer Default Ratings (IDRs) at
'BB-'. The Outlooks are Stable.
The issue ratings on Armenia's senior unsecured foreign and local
currency bonds have also been affirmed at 'BB-'. The Country Ceiling
has been affirmed at 'BB' and the Short-term foreign currency IDR at
'B'
The affirmation of Armenia's sovereign ratings reflects the following
key factors: The general government deficit fell to 1.7% of GDP in
2013, against initial projections of 2.8%. This was mainly due to
under-execution and delays in the implementation of public investment.
The government expects the deficit to rise to 2.4% of GDP in 2014,
although further under-execution is possible.
The increase in public sector wages, effective from 1 July 2014, will
increase public spending by about 0.4% of GDP in 2014 and 2015, but
has already been budgeted for and will be compensated by an increase
in tax collection.
The general government debt level is expected to remain stable at
around 43%-44% of GDP in 2014-15, and could fall in 2016 if GDP growth
picks up. -0-
http://arka.am/en/news/economy/fitch_ratings_confirmed_armenia_s_long_term_foreig n_and_local_currency_idrs/#sthash.uADNQStP.dpuf
From: Baghdasarian
YEREVAN, August 2. / ARKA /. Fitch Ratings has affirmed Armenia's
Long-term foreign and local currency Issuer Default Ratings (IDRs) at
'BB-'. The Outlooks are Stable.
The issue ratings on Armenia's senior unsecured foreign and local
currency bonds have also been affirmed at 'BB-'. The Country Ceiling
has been affirmed at 'BB' and the Short-term foreign currency IDR at
'B'
The affirmation of Armenia's sovereign ratings reflects the following
key factors: The general government deficit fell to 1.7% of GDP in
2013, against initial projections of 2.8%. This was mainly due to
under-execution and delays in the implementation of public investment.
The government expects the deficit to rise to 2.4% of GDP in 2014,
although further under-execution is possible.
The increase in public sector wages, effective from 1 July 2014, will
increase public spending by about 0.4% of GDP in 2014 and 2015, but
has already been budgeted for and will be compensated by an increase
in tax collection.
The general government debt level is expected to remain stable at
around 43%-44% of GDP in 2014-15, and could fall in 2016 if GDP growth
picks up. -0-
http://arka.am/en/news/economy/fitch_ratings_confirmed_armenia_s_long_term_foreig n_and_local_currency_idrs/#sthash.uADNQStP.dpuf
From: Baghdasarian