S&P Global Ratings affirms Georgia’s BB rating, praises banking regulation, economic growth

International rating agency S&P Global Ratings has affirmed Georgia's sovereign credit rating at BB with a “stable” outlook, reported the National Bank of Georgia, highlighting the country's prudent economic management.

According to S&P’s report, Georgia's monetary and fiscal policies are more prudent than those of other countries in the region. This is attributed to the country's structural reforms, which have contributed to an improved business environment.

The report also emphasises the National Bank of Georgia’s success in accumulating reserves. The NBG’s policy of strategic net purchases has led to an increase in international reserves in recent months, a trend driven by strong tourism revenue and sustained financial inflows.

In its review, the rating agency praised Georgia’s banking sector, noting that it remains profitable with a high level of capitalization and solid liquidity buffers.

“In our view, strong supervisory capabilities, robust corporate governance, and a high degree of transparency contribute to Georgia's effective banking regulation, which is broadly consistent with international standards”, the National Bank of Georgia said.

S&P Global also provided updated economic forecasts for Georgia. The agency projects that inflation will average 3.7% in 2025. Furthermore, S&P Global revised its economic growth forecast for Georgia upward to 7.1%, citing a backdrop of strong economic growth.