S&P reaffirms Georgia’s BB credit rating with stable outlook

S&P Global Ratings on Saturday reaffirmed Georgia’s sovereign credit rating at BB with a stable outlook, praising the country’s resilient economic and fiscal performance, reduced public debt, strong growth driven by domestic demand, and prudent policy framework.

In its assessment, S&P noted that Georgia had demonstrated a resilient economic and fiscal position.

The stable outlook reflected the country’s economic policies, a reduced level of Government debt, the floating exchange rate regime, and continued access to financing from international financial institutions.

The agency reported that Georgia continued to maintain strong economic growth, driven primarily by strengthened domestic demand.

According to S&P’s expectations, Georgia’s economic growth over the medium term would remain higher than that of countries with comparable credit ratings.

S&P also highlighted increased revenues from tourism and a reduction in the current account deficit in recent years.

At the same time, the level of international reserves has risen, contributing to improved management of exchange rate volatility.

The rating agency continued to assess Georgia’s fiscal and monetary policy framework as prudent and cautious in a regional context. It also noted that ongoing structural reforms support macroeconomic stability and contribute to an improved business environment.

Commenting on the assessment, Levan Vepkhvadze, Executive Director of the Georgian Business Association, emphasised the importance of stable credit ratings for attracting international investment.

“First of all, this is exactly what matters for business when it comes to attracting international investors. The key information that we provide to international investors - brokers working in the real estate sector - is precisely the country’s stable credit ratings, so that they have confidence and hope in the stable development of every dollar they invest in the country. Therefore, it is very important in terms of this partnership to clearly see that every successful rating represents trust in our country and trust in Georgian business”, he said.