(Read the full report on fitchreportings.com)

Fitch Ratings has affirmed Armenia’s ACBA BANK Open Joint-Stock Company’s (ACBA) long-term Issuer Default Rating (IDR) at ‘B+’ with a Negative Outlook.

ACBA’s IDR and senior debt rating are driven by the bank’s intrinsic strength, as captured in its Viability Rating (VR) of ‘b+’, Fitch said.

The VR is significantly influenced by Fitch’s assessment of the potentially cyclical operating environment in Armenia and resulting credit risks from the highly-dollarised and concentrated local economy.

“The Negative Outlook on the long-term IDR reflects Fitch’s view of residual downside risks to the bank’s credit profile due to the lag effect from the economic downturn, keeping asset quality and solvency metrics under pressure in the near term,” the agency said.