S&P revises Georgia view to stable

Standard & Poor's said it revised its outlook on the Government of Georgia to stable from positive, owing to increased geopolitical risk. At the same time, the B+ long-term and B short-term sovereign credit ratings were affirmed.

The outlook change reflects S&P's view that the geopolitical risks in the region have increased significantly and may impair positive trends in external liquidity, investor sentiment and economic growth.

These risks are partly balanced by still strong economic prospects, underpinned by rapid reform, continued prudent fiscal policies and an increasingly market-oriented economic structure, the agency added.

The ratings are constrained by geopolitical risk, relatively high inflation, a comparatively undeveloped financial sector and a narrow economic structure, the agency said.

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