Moody’s Revises Armenia’s Sovereign Rating Outlook from Stable to Positive

NEW YORK — On July 28, 2026, Moody’s Ratings announced that it had revised Armenia’s sovereign credit rating outlook from “stable” to “positive,” while affirming the country’s long-term sovereign rating at Ba3.

Moody’s attributed the improved outlook to several key factors.

The agency cited a reduction in geopolitical and political risks, driven by a lower likelihood of a large-scale military confrontation with Azerbaijan, progress in normalizing relations with Turkey, the diversification of Armenia’s foreign partnerships through deeper cooperation with the United States and the European Union, and continued domestic political stability.

Moody’s also pointed to an improved medium-term economic growth outlook. Armenia’s economy is expected to expand by approximately 5 to 5.5 percent in 2026 and 2027, supported by resilient domestic demand, increased investment, continued growth in the services sector and higher government spending.

The agency further highlighted the strengthening of Armenia’s structural economic potential, citing increased investment—particularly in the technology and infrastructure sectors—continued economic diversification and prospects for higher productivity.