Fitch: Downside risks remain in Georgia

Fitch Ratings said that although Georgia's economy is showing some encouraging signs of resilience, it expects the military conflict to carry significant costs for the economy, and risks to the ratings remains on the downside.

Fitch recently downgraded Georgia's long-term local- and foreign-currency issuer default ratings to B+ from BB- and assigned a negative outlook.

Despite the ceasefire agreement, some encouraging signs of the Georgian economy's resilience and potential support from international financial institutions, the agency said it continues to see downside risks to the economy and creditworthiness due to the conflict.

It remains too early to judge how severe the impact has been on the economy, Fitch said, and the risk of further military and political conflict remains.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.