(Read the full report on fitchratings.com)

Fitch Ratings has affirmed Armenia’s Ardshinbank CJSC’s long-term Issuer Default Rating (IDR) at ‘B+’ with a Negative Outlook.

Ardshinbank’s IDRs and senior debt rating reflect the bank’s intrinsic strength, as captured by 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 residual downside risks to the bank’s credit profile from the lag effect from the economic downturn, keeping asset quality and solvency metrics under pressure in the near term,” the agency said.