Moody’s changes Armenia’s outlook to negative

Moody’s reduced Armenia’s Ba2 government foreign and local currency issuer ratings from stable to negative, News.am reports on Tuesday.

The changes reflected risks to Armenia’s growth outlook in the coming years, given the anticipated economic slowdown in Europe and Russia, its main trading partners, and the impact of potentially weaker commodity prices for the country’s mining and metals industries, a press release issued by the agency says.

The reduction is also conditioned by concerns about the deterioration of Armenia’s debt metrics and external position following the 2009 recession and its impact on the country’s shock-absorption capacity as it enters another period of heightened economic uncertainty.