(Horizon Media) – Moody’s Ratings has upgraded Armenia’s sovereign outlook from stable to positive while affirming the country’s Ba3 long-term issuer ratings in both local and foreign currency. The agency said the revised outlook reflects declining geopolitical risks and improving prospects for medium-term economic growth. It cited the reduced likelihood of renewed large-scale hostilities with Azerbaijan, Armenia’s increasingly diversified foreign relations and relatively contained domestic political risks. Moody’s nevertheless kept Armenia’s rating at Ba3, saying recent economic growth has not yet produced broad structural improvements. Moody’s said Armenia would also need to demonstrate that stronger economic growth is producing lasting improvements in its fiscal and economic fundamentals.