Officials welcome Georgia's upgrade in Standard & Poor's sovereign credit rating
S&P Global Ratings has recently upgrated Georgia to 'BB' from 'BB-' with stable outlook. Photo: Nino Alavidze/Agenda.ge
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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".
Prime Minister Giorgi Gakharia named a number of reasons in his Twitter post, which served as preconditions for the upgrade.
#Georgia's Sovereign Credit Rating raised to BB w/ stable outlook by @SPGlobalRatings. S&P's upgrade is due to #high growth rate, #strengthened economic resilience, overall predictability, #strong institutional framework, & government's #reform focus.https://t.co/hELVPxrZWq
— Giorgi Gakharia (@GakhariaGiorgi) October 12, 2019
Foreign Minister David Zalkaliani said Georgia maintains leading positions in international rankings and is developing in a “sustainable and stable way”.
Georgia maintains leading positions in the international rankings. The ranking company „S&P“ improved the sovereign ranking of Georgia from ”BB-“ to “BB“. ???????? is being developed in a sustainable & stable way & t/reforms carried out in our country are consistent and result oriented https://t.co/ZzOsfZbBoi
— David Zalkaliani (@DZalkaliani) October 12, 2019
Former Prime Minister Mamuka Bakhtadze also welcomed the news on Twitter.
Want to congratulate everyone with @SPGlobal’s update on Georgia's #SovereignCreditRating to BB Stable. Its important that S&P acknowledges Georgia's Pension & Land registry reform, VAT refund reform, infrastructural development & our National Idea - Education reform.
— Mamuka Bakhtadze (@BakhtadzeMamuka) October 12, 2019
S&P said in its recent report that Georgia has maintained comparatively high growth rates over the past few years, even in a challenging external environment.
“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.
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.
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.
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.
S&P said the ratings are supported by Georgia's ‘relatively strong institutional arrangements when compared regionally; its floating exchange rate regime; and the availability of timely, concessional financing from IFIs under extenuating circumstances’.