Fitch revises Georgia’s outlook from stable to positive
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Global rating agency Fitch Ratings has revised the outlook on Georgia’s sovereign credit rating from stable to positive, announced Georgia’s Ministry of Economy today.
The revision of the outlook to positive reflects the key rating drivers such as maintaining a stable macroeconomic environment, showing resistance to shocks and ensuring a favorable business environment", said the ministry.
Georgia’s growth prospects compare favourably with the ‘BB’ rated peer group, where median five-year average growth is estimated to be 3.5 percent. Under Fitch’s latest projections Georgia is set to achieve real GDP growth of 4.6 percent in 2018 and 4.9 percent in 2019", read the statement of the Ministry of Economy.
The composition of growth is expected to be broad-based, supported by a favourable external environment supporting growth in exports and remittances, as well as higher domestic demand driven by an increasing government drive towards higher capital spending", read the statement.
Fitch’s projections for the budget deficit and growth performance are consistent with a gradual decline in government debt. Fitch sees a stabilisation in the government debt ratio, estimated at 44.5 percent of GDP in 2017, which is just below the median debt ratio (47.4 percent) of ‘BB’ category peers, and forecast by the agency to gradually decline towards 43.4 percent of GDP by 2019.
Georgia’s government debt structure has a high level of concessional and multilateral debt (84 percent of total debt), but 76 percent is foreign currency-denominated, exposing it to exchange rate volatility. For 2018-2019, Fitch estimates upcoming government debt maturities averaging 4.7 percent of GDP and interest payments equivalent to three percent of revenues.
Global rating agency Fitch Ratings praises Georgia’s fiscal policy, which was implemented in the country in November 2016.
The United States government’s Overseas Private Investment Corporation (OPIC) significantly increases the investment limit for Georgia, says Georgia’s Finance Minister Dimitry Kumsishvili.
A delegation from the United States (US) government's development finance institution is in Georgia to negotiate terms of its latest $67 million support package for Georgia.
"Georgia continues to grow, overcomes external shocks"
Georgia is continuing to enjoy strong governance indicators by regional and rated peer standards despite facing external shocks, says global rating agency Fitch Ratings.
Global rating agency Fitch Ratings has assessed Georgia’s Issuer Default Ratings (IDR) at 'BB-'. The outlook is positive, says Fitch. Fitch projects real GDP growth to average 4.8 per cent in 2019-2020, compared with 3.5 per cent across 'BB' category sovereigns.
Fitch expects Georgia's economic growth to increase in 2019 due to a pick-up in capital spending, which dipped last year while inflation is forecasted to remain in line with the central bank's target of 3 percent in 2019-2020.
“Georgia is the only country in the region to move up in the rating”
Georgian Prime Minister Mamuka Bakhtadze has responded to Georgia’s improved standing in the Fitch rating and noted that of particular import is the fact that Georgia is the only country in the region which moved up in the rating.
Fitch has reaffirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a stable outlook. Fitch first upgraded the country’s rating to 'BB' from 'BB-' earlier in February.
Global rating agency Fitch Ratings is keeping Georgia’s sovereign credit rating at ‘BB’ with a stable outlook.
Global rating agency Fitch Ratings has downgraded three Georgian banks' support ratings to '5' from '4' and revised the banks' support rating floors (SRFs) to 'no floor' from 'B'.