The stable outlook reflects S&P's expectation that the ceasefire agreement between Azerbaijan, Armenia, and Russia will broadly hold, underpinning a reduction in war-related security, financial sector, and balance-of-payments risks.

One of the main tasks of the agency is to identify promising industries and areas of investment activity and study strategies to attract investment.

Periodic shootouts have increased along the border, where a kilometre here or a metre there apparently is enough reason to unleash heavy calibre weaponry

Parliament has also lowered the budget deficit to 6.9 percent from 7.6 percent and the government's debt to 54.6 percent of Gross Domestic Product (GDP).

This additional issue increased the total amount of Eurobonds in circulation with an interest rate of 6.876 percent to $1.25 billion.

The bank said that the new forecast would also reflect an improved outlook for Armenia and Georgia.