Fitch reaffirms Georgia to 'BB’ with stable outlook
Fitch has upgraded Georgia's rating to 'BB' from 'BB-' in February 2019. Photo: Nino Alavidze/Agenda.ge
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Fitch has reaffirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a stable outlook.
Fitch upgraded the country’s rating to 'BB' from 'BB-' earlier in February.
Georgia's ratings are supported by governance and business environment indicators that are above the current medians of 'BB' category peers, and a track record of macroeconomic resilience against regional shocks”, Fitch announced yesterday.
It also noted that Georgia's external finances “are significantly weaker than the majority of 'BB' category peers”. However, Fitch said that Georgia is facing “a new external shock after withstanding a testing external environment in 2018”.
Dynamic tourism exports and lower import growth following the completion of large energy projects led to a narrowing of the current account deficit to 7.7% of GDP in 2018, from 8.8% in 2017”, Fitch stated.
It also mentioned the recent ban on flights imposed by Russia, which is "the largest source of tourist arrivals in Georgia". Fitch said the Georgian authorities "are assessing the impact from the ban and their policy response".
Fitch forecasts the current account deficit will narrow further to an average of 5.3% over 2019-2021 versus 3% for the current 'BB' median.
For more details on Georgia’s rating read Fitch’s full report.
“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 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.
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.
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.
Standard & Poor's (S&P) Global Ratings has raised its long-term foreign and local currency sovereign credit ratings on the Government of Georgia to 'BB' from ‘BB-’. It also affirmed the short-term ratings at 'B'. The outlook is stable.
Officials in Georgia have welcomed Georgia's upgrade in Standard & Poor's (S&P) long-term foreign and local currency sovereign credit ratings from "BB-" to "BB".
Companies trading on the Georgian Stock Exchange (GSE) who have the highest quality of reporting were awarded yesterday with the Best Annual Report and Transparency Award including JSC TBC Bank, JSC Telasi, Georgian Leasing Company LLC and JSC Crystal.
Georgia 12th in world and 6th in Europe
Georgia’s economic freedom score is 77.1, making its economy the 12th freest in the 2020 Index of Economic Freedom by the Heritage Foundation.
Global Fitch has confirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘BB’ with a negative outlook. Fitch notes in its report that Georgia's ratings are supported “by strong structural indicators” such as governance and business environment relative to 'BB' category peers.