Fitch cuts Georgia

Fitch Ratings said it downgraded Georgia's long-term local- and foreign-currency issuer default ratings to B+ from BB-, and country ceiling to B+ from BB-, and affirmed the short-term foreign-currency issuer default rating at B.

The outlook is negative.

"The significant escalation in the military conflict between Georgian government forces and South Ossetian separatists in the last 24 hours and the elevated risk that Russia could become more deeply involved in the situation has materially increased downside risks to Georgia's sovereign creditworthiness," Edward Parker, head of emerging Europe sovereigns at Fitch, said in a written statement.

Rating strengths include a moderate level of government debt and dynamic economic growth performance, the agency noted.

© 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.