S&P Global Ratings Upgrades Georgia’s Outlook from Stable to Positive and Affirms Sovereign Credit Rating at BB

S&P Global Ratings affirmed Georgia’s sovereign credit rating at BB, maintaining the rating unchanged after assessing a range of economic and institutional factors. Importantly, the agency revised the country’s outlook from Stable to Positive, Finance Ministry of Georgia released the information.

According to the sovereign rating report, Georgia continues to demonstrate resilient economic growth, prudent macroeconomic policies and strong domestic demand. The BB sovereign rating is underpinned by several key factors, including the accumulation of international reserves, robust economic growth, sound fiscal management, moderate government debt and a stable banking sector.

These strengths are further reinforced by Georgia’s continued access to concessional financing from international financial institutions. According to the report, the decision to revise the outlook to Positive is based on the agency’s expectation that Georgia will continue to strengthen its external position through the further accumulation of international reserves, thereby reducing its vulnerability to external shocks.

The Positive Outlook also reflects expectations that Georgia will maintain its strong economic growth momentum and prudent fiscal policy, leading to a further improvement in the country’s fiscal position over the next 12 months.

The rating agency notes that, despite ongoing geopolitical challenges, Georgia continues to deliver strong economic performance. S&P expects the country to maintain its prudent fiscal policy, ensuring that both the budget deficit and government debt remain at moderate and sustainable levels. It notes a significant reduction in the current account deficit and its continuation, as well as a tight monetary policy, taking into account inflationary trends.

According to the agency’s forecast, compared to its February projections, the baseline economic growth outlook has been significantly upgraded. The agency now expects Georgia’s economy to grow by 6.4% in 2026 and 5.9% in 2027, while medium-term growth is projected to remain at around 5%.

S&P assesses Georgia’s banking system as well-capitalized and highly liquid, while highlighting the effectiveness of the macro-prudential measures implemented by the National Bank of Georgia.

As a result, the agency continues to evaluate Georgia’s economic, fiscal and monetary policy frameworks as sound and prudent, noting that despite geopolitical challenges, the country continues to maintain one of the highest rates of economic growth globally.