Fitch Ratings reaffirms Georgia’s BB sovereign rating with stable outlook

The International credit rating agency Fitch maintained Georgia’s sovereign credit rating at BB with a stable outlook, citing strong economic growth, prudent fiscal policies, and a stable banking sector.

The agency noted that Georgia has demonstrated resilience in both economic and fiscal policy management.

The stable outlook was linked to factors including strong economic growth, ongoing economic development, moderate government debt levels, and a stable banking system.

Fitch Ratings stated that despite geopolitical uncertainty and broader global risks, Georgia continues to maintain solid economic growth driven by strong domestic demand, investment activity, and net exports.

The report points to an improved current account balance, a budget deficit well below the 3% of GDP legal ceiling, and government debt below 35% of GDP - significantly lower than both Georgian legislation and the average for peer countries.

The agency additionally pointed to growth in international reserves and the continuation of a relatively tight monetary policy aimed at maintaining inflation stability.

Georgia’s banking system was described as well-capitalized, with strong profitability, asset quality, and supervisory standards.

Fitch Ratings also noted that macroprudential policies introduced by the National Bank of Georgia are helping reduce dollarisation in the economy.