S&P affirms Georgia

Standard & Poor's said it removed the government of Georgia from CreditWatch negative, where they were placed on Aug 8, due to the significant uncertainties related to the economic impact of the war with Russia (foreign-currency BBB+/stable/A-2).

The outlook on Georgia's long-term ratings is now stable. The B long- and short-term sovereign credit ratings were affirmed.

Ratings are constrained by Georgia's narrow economic structure, geopolitical risks stemming from the tense relationship with Russia and the aggravating effect this has on Georgia's weak external indicators, the agency said.

A strengthening of the legislature and the emergence of a stronger, more cohesive opposition would allay investor fears with regard to a repeat of the November 2007 domestic political turmoil, the agency noted.

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