BAKU, Azerbaijan, January 17. Progress in the
peace process with Azerbaijan can improve Armenia’s rating, says
Fitch Ratings, Trend reports.
Fitch Ratings has revised the Outlook on Armenia’s Long-Term
Foreign-Currency (LTFC) Issuer Default Rating (IDR) to Positive
from Stable and affirmed the IDR at ‘BB-‘.
“Armenia and Azerbaijan signed a joint declaration that aims to
reach a peace agreement, which significantly reduces near-term
military escalation risks. Trade with and through Azerbaijan has
begun to open up. Relations with Turkiye are substantially
improving, and the Turkish government is reportedly considering
reopening its land border with Armenia,” reads the latest report by
Fitch.
The rating agency believes that additional upside to the
medium-term growth forecast could emerge from sustained
implementation of the peace agreement with Azerbaijan and the
reopening of the border with Turkiye.
Among factors that could lead to negative rating action, Fitch
names the developments that increase geopolitical risks and
undermine political and economic stability, for example, derailment
of the current peace process with Azerbaijan.
The rating agency analysts believe that among factors that could
lead to positive rating action is a sustainable decline in
geopolitical risk and domestic political uncertainty, for example,
as a result of meaningful progress in the peace process with
Azerbaijan.
On August 8, 2025, in Washington, President of the Republic of
Azerbaijan, Ilham Aliyev, US President Donald Trump, and Armenian
Prime Minister Nikol Pashinyan signed a joint declaration. One of
the points of the document provides for the launch of the “Trump
Route for International Peace and Prosperity” (TRIPP) to unblock
regional communications.
During the meeting, Foreign Minister of the Republic of
Azerbaijan Jeyhun Bayramov and Foreign Minister of the Republic of
Armenia Ararat Mirzoyan initialed the draft “Agreement on the
Establishment of Peace and Interstate Relations between the
Republic of Azerbaijan and the Republic of Armenia” and signed a
joint appeal to the current OSCE Chairperson-in-Office to close the
OSCE Minsk Group process.