S&P Global Ratings improved the outlook on Ameriabank, revising it to positive from stable and affirmed 'B+/B' long- and short-term issuer credit rating on the bank.
Ameriabank rating update follows the sovereign rating action: S&P assigned 'B+' long-term sovereign credit rating to Armenia, with positive outlook. This is the first sovereign rating assigned to Armenia by S&P.
The 'B+' long-term rating on Ameriabank is one notch lower than its stand-alone credit profile (SACP) rated “bb-“, due to the sovereign’s creditworthiness constraint.
The revision of the outlook on Ameriabank to positive from stable follows robust recovery of the Armenian economy in the first half of 2021. S&P has revised upward the real GDP growth forecast for Armenia to 6.3% in 2021 and an average of 4.3% in 2022-2023. In S&P’s view, the stabilization of the macroeconomic and fiscal environment in Armenia should reduce risks for the Armenian banking system and create a more favorable operating environment for Ameriabank's business and financial profile, supporting new business growth and asset quality.
S&P considers Ameriabank well positioned to retain its leading market positions in Armenia, supported by good macroeconomic growth prospects and due to the bank's strong domestic brand, professional management team, advanced digitalization strategy and adequate corporate governance.