S&P lifts Georgia Capital notes BB-

S&P said it raised its rating on Georgia Capital JSC to BB- from B+ and removed the rating from CreditWatch with positive implications where it was placed on July 12. The agency also assigned a BB- rating to the $150 million of senior unsecured notes in line with the preliminary rating assigned on July 12.

“The upgrade follows Georgia Capital's completed refinancing and the resulting extension of its debt maturity profile. Georgia Capital has completed the issuance of the $150 million sustainability-linked senior unsecured notes in the Georgian market. The notes are U.S. dollar-denominated with a five-year bullet maturity, due August 2028 (callable after two years at the company's discretion) and carry an 8˝% fixed coupon,” S&P said in a press release.

The proceeds and liquid funds at the holding company were used to fully redeem the $300 million of notes due March 2024. “We see Georgia Capital's new capital structure as supportive for its credit standing because the company has now meaningfully extended its debt maturity profile and reduced its outstanding absolute debt in a context of rising interest rates,” the agency said.

The outlook is stable.

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