Baku: The TRIPP project has the potential to bolster regional connectivity and facilitate trade and investment over the medium term, according to APA-Economics.

According to Azeri-Press News Agency, international rating agency SandP Global Ratings recently assessed Armenia, highlighting that while the TRIPP framework agreement outlines key governance and sovereignty principles, the project is still in its nascent stages. Important aspects such as project areas, financing mechanisms, and specific concession terms remain to be finalized.

SandP Global Ratings also noted that improving relations with Azerbaijan could widen the scope for regional transit and trade. However, the agency cautioned that geopolitical uncertainties might impede the signing and implementation of a peace agreement with Azerbaijan.

The agency pointed out that the results of elections in Armenia could potentially catalyze the normalization of relations with Azerbaijan, in addition to advancing the peace agreement process. Despite Azerbaijan and Armenia agreeing on a peace treaty text in 2025, the formal signing and implementation of the treaty are contingent upon various conditions being met.

SandP credits ongoing progress in normalizing relations with Azerbaijan as a key factor for its 'positive' outlook on Armenia. It suggested that, in conjunction with growing foreign exchange reserves, further advancements could mitigate Armenia's balance-of-payments and geopolitical vulnerabilities over time.

An upgrade to Armenia's rating could be considered if the country's balance-of-payments resilience is sustained amidst security and geopolitical challenges. Further normalization of relations with Azerbaijan is also highlighted as a contributing factor to potential positive rating actions.

Nonetheless, SandP acknowledges the prevailing uncertainty regarding the formalization and execution of the peace agreement. Key unresolved issues include border delimitation and the establishment of security mechanisms.