The TRIPP project could strengthen regional connectivity and support trade and investment over the medium term, APA-Economics reports.
This was stated in international rating agency S&P Global Ratings’ assessment of Armenia.
The agency notes that although the TRIPP framework agreement sets out the initiative’s key governance and sovereignty principles, implementation of the project is still at an early stage. Project areas, financing mechanisms and detailed concession terms have yet to be finalized.
At the same time, S&P believes that further normalization of relations with Azerbaijan could expand regional transit and trade. However, it emphasizes that geopolitical uncertainty could delay the signing and implementation of a peace agreement with Azerbaijan.
According to the agency, the results of elections in Armenia could give new impetus to the normalization of relations with Azerbaijan, as well as to the process of signing and implementing the peace agreement: “Azerbaijan and Armenia agreed on and initialed the text of a peace treaty in 2025, but the signing and implementation of the document still depend on certain conditions.”
S&P also cites continued progress toward normalizing relations with Azerbaijan as one of the key factors behind its “positive” outlook on Armenia. According to the agency, alongside an increase in foreign exchange reserves, further progress in this process could reduce Armenia’s balance-of-payments and geopolitical vulnerabilities over time.
The agency states that Armenia’s rating could be upgraded if the resilience of the country’s balance of payments is maintained in the face of security and geopolitical risks. Further normalization of relations with Azerbaijan is also cited as one of the factors that could support a potential positive rating action.
At the same time, S&P says uncertainty remains over the formal signing and implementation of the peace agreement. Border delimitation and security mechanisms are cited among the main unresolved issues.
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