S&P upgrades Georgia to 'BB'

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.

According to the agency, Georgia has maintained comparatively high growth rates over the past few years, "even in a challenging external environment."

"Incorporating a slight slowdown in the second half - lower tourism revenues and muted consumption following the lari's depreciation - we project real GDP growth of 4.5% in 2019. We have revised up this estimate from our previous 4% for the full year", S&P said.

It further noted that Georgia "remains a small, open economy with a narrow export base and a significant net external liability position built on persistent past current account deficits," Agenda.ge reported.

"In our view, Georgia's institutional settings remain favourable in the context of the region, with several established precedents regarding power transfer, and a degree of checks and balances between various government bodies”, S&P announced.