Fitch Ratings has affirmed Georgia’s long-term foreign-currency Issuer Default Rating (IDR) at ‘BB’ with a positive outlook.
According to the official statement, “the rating is supported by Georgia’s strong governance and economic development indicators relative to the ‘BB’ medians, its credible macro-fiscal policy framework, moderate level of public debt, and sound banking sector.”
“These factors are balanced by high financial dollarisation and exposure of public debt to foreign-currency risk, and weaker external finances, including high net external debt and a large negative international investment position.
The Positive Outlook reflects very strong economic recovery combined with a fall in inflation and an improved external position. Macro-policy settings remain sound and Georgia’s record of fiscal prudence helps underpin our expectation of low and stable general government deficits. Fitch also has greater confidence that migrant and capital inflows from Russia will not sharply reverse, although this remains a downside risk,” reads the statement.