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.