S&P Affirms Armenia's Credit Ratings, Maintains Positive Outlook

S&P Global Ratings has affirmed Armenia's sovereign credit ratings at BB-/B in both foreign and local currencies, maintaining a positive outlook on long-term ratings. The agency cited potential for Armenia to strengthen external resilience through foreign currency reserve accumulation and normalized relations with Azerbaijan.

The ratings remain constrained by geopolitical risks, security concerns, and balance-of-payments vulnerabilities, though supported by prudent policy frameworks and strong growth prospects. S&P noted that June parliamentary elections reinforcing Prime Minister Nikol Pashinyan's government should support policy continuity and reform implementation.

Armenia's foreign currency reserves reached a record $6.9 billion in June 2026, up 46% year-over-year. However, S&P warned that Russian trade restrictions on Armenian goods—expanded since April to include agricultural products—could impact approximately 2% of GDP, with effects likely pronounced in late 2026.