Fitch: Georgia eurobond B+

Fitch Ratings said it assigned a B+ rating to Georgia's $500 million eurobond due April 12, 2021, which is in line with Georgia's long-term foreign-currency issuer default rating.

The agency also said it affirmed that long-term foreign-currency issuer default rating at B+ and revised Georgia's outlook to positive from stable.

The positive outlook reflects Georgia's strong economic recovery, a reduction in both the budget and current account deficits, an improvement in the financial sector's health and some easing of political risk, Fitch said.

In parallel to the bond issue, the Georgian government announced a cash tender offer to buy back its $500 million 2013 eurobond issued in April 2008, in which it redeemed $417 million, the agency said.

Fitch said it views the resulting lengthening of Georgia's market debt maturity and smoothing of its amortization hump in 2013 as a favorable development.

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