Standard&Poor’s increases Georgia’s sovereign credit rating to “BB”
Standard&Poor’s increases Georgia’s sovereign credit rating to “BB”

The international rating company Standard&Poor’s (S&P) increased the sovereign credit rating of Georgia to “BB” “Stable.” This is the first improvement after 2011 when the Standard & Poor’s credit rating for Georgia stood at BB- with “a stable outlook.”

The report published by the rating company says that despite foreign and regional challenges, Georgia showed high economic growth in comparison to its neighbors and reached about 4% in 2015-2018.

The company prognosticates positive evaluation for the future since it believes that the Georgian government’s policy will be directed toward diversification of export and foreign investments as well as toward infrastructure development.

The rating company expects the increase of Gross Domestic Product (GDP) at 4.5% this year. The average growth in 2019-2022 will be 4%.

The report also mentions export from Georgia including to the countries of the European Union where the supply of products increased by 30% after activation of the Free Trade Agreement. The fluctuation of the Turkish and Russian currencies is named as possible risks to Georgia’s economy.

The international rating company Standard&Poor’s (S&P) improved Georgia’s sovereign rating at “BB” “Stable.” Previously the Standard & Poor’s credit rating for Georgia stood at BB- with “a stable outlook.” In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the creditworthiness of Georgia thus having a big impact on the country’s borrowing costs.