BAKU, Azerbaijan, July 28. Moody's Ratings has
changed Armenia's outlook to positive from stable, affirming Ba3
Ratings.


“The positive outlook reflects a material reduction in political
risks underpinned by a lower probability of renewed large-scale
hostilities with Azerbaijan, a rebalancing of external relations
toward a more diversified set of partners, and contained domestic
political risks,” said the rating agency.


Moody’s analysts note that these credit strengths are balanced
against rising interest expenditures and lingering geopolitical
risks, which continue to weigh on the sovereign's credit
profile.


“While geopolitical risks have eased, uncertainties surrounding
Armenia's evolving external orientation and its relationship with
Russia continue to pose risks to Armenia's economic security given
the two countries' strong economic ties,” noted the rating
agency.


On August 8, 2025, following a trilateral meeting with U.S.
President Donald Trump in Washington, President of Azerbaijan Ilham
Aliyev and Prime Minister of Armenia Nikol Pashinyan signed a joint
declaration on establishing peace between Baku and Yerevan and
restoring transport connectivity between mainland Azerbaijan and
the Nakhchivan Autonomous Republic. The initiative was named the
"Trump Route for International Peace and Prosperity."







As part of the meeting, Azerbaijan's Foreign Minister Jeyhun
Bayramov and Armenia's Foreign Minister 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 by the foreign ministers of
Azerbaijan and Armenia to the OSCE Chairperson-in-Office calling
for the termination of the OSCE Minsk Process, the mandate of the
Personal Representative of the OSCE Chairperson-in-Office on the
conflict dealt with by the Minsk Conference, and the High-Level
Planning Group.


In early July, Jeyhun Bayramov told reporters that following the
elimination of territorial claims contained in the Armenian
Constitution, a peace treaty could be signed as early as the next
day.


The minister emphasized that Azerbaijan has fully fulfilled all
of its obligations.


“We also have our own expectations. The Armenian side has stated
that the new Constitutional Act will not contain any reference to
the previous Act of Independence. In that case, there will be no
obstacles left to achieving peace. The sooner this happens, the
better,” the minister noted.