The International Agency Fitch Ratings has assigned Yerevan Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of ‘B+’ with Stable Outlook.
The ratings reflect Yerevan’s Standalone Credit Profile (SCP) of ‘bb-‘, resulting from a combination of a ‘Vulnerable’ risk profile and a ‘aaa’ debt sustainability assessment. The IDRs are capped by the Armenian sovereign ratings of ‘B+’/Stable.
According to the agency, the negative impact of COVID-19 on the economic environment deteriorated the incomes of Yerevan.
The budget outlook of Yerevan related to its expenditures is assessed as “Midranged”. It is mentioned that Yerevan is fulfilling balanced control over expenditures as a result of which the expenditure dynamics is almost the same with revenue dynamics.
The city’s responsibilities remain relatively stable through the economic cycle. The largest spending item is education, which accounted for 42% of total spending in 2019. It was followed by the utility sector, which accounted for another 22% of expenditure.
Yerevan Municipality
