S&P affirms Georgia

S&P said it affirmed its BB-/B long- and short-term foreign and local currency sovereign credit ratings on the Government of Georgia.

The outlook is stable.

“In our view, Georgia's creditworthiness is supported by the country's reasonably resilient economic growth and the government's relatively prudent fiscal position, with net general government debt below 40% of GDP,” S&P said in a news release. “The ratings are primarily constrained by income levels – which remain low in a global comparison – and considerable balance of payments vulnerabilities, including significant import dependence, high current account deficits, and sizable external debt.

“We also believe that the ratings remain constrained by the limited monetary policy flexibility, given Georgia's shallow domestic capital markets and high levels of dollarization.”

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