2020-08-30
Despite the pandemic and the global economic crisis, as of now, two influential rating agencies - S&P and Fitch - have left Georgia's sovereign credit rating and outlook unchanged.
According to the report by the rating company S&P, the retention of economic stability despite external challenges was deemed a strong point of Georgia's sovereign rating.
S&P considers institutional strength to be a significant advantage of the Georgian economy.
The rating company gave a positive assessment to the following efforts by the government: Measures to reduce dollarization, pension reform, deposit insurance, capital market development, and other reforms carried out by the authorities.
In the report, S&P notes that the economic reforms by the Government of Georgia that are focused on long-term economic growth include the following: The implementation of infrastructure projects, the further improvement of the business environment, and the reform of education and state-owned enterprises.
The report states that the pace and strength of economic recovery indicates the government's ability to ensure the reduction of the debt-to-GDP ratio.
The fact that Georgia's rating and outlook remained unchanged - given the negative impact of the pandemic on the economy and considering that the ratings of a number of countries have deteriorated - clearly indicates confidence in Georgia's economic policy.
The rating agency Fitch also published its ratings this month. Despite global challenges, Georgia's sovereign credit rating and outlook remained unchanged.
Fitch's position clearly reflects the rating company's positive assessment of our country's economic policy, business environment, institutional strength, and quality of governance.
The organization believes that the measures implemented by the government within the framework of the Anti-Crisis Plan will be one of the main sources for the improvement of demand and the recovery of economic activity.
According to the rating company's assessment, a reliable and consistent economic policy framework during the crisis has contributed to the stability of the Georgian economy, the retention of macroeconomic stability, and the reduction of the risks of the current account deficit.
Maintaining an unchanged sovereign rating is a positive factor that significantly strengthens international institutions' confidence in Georgia and has a positive impact on Georgia's investment climate.