International credit rating company Moody's Investor Service improved Georgia's local and foreign currency issuer ratings to Ba2 from Ba3. Moody's has increased Georgia’s rating for the first time in the last seven years.
“The rating upgrade and stable outlook are supported by Moody's view that the Georgian economy's resilience in the wake of the regional economic shock which began in 2014 demonstrates the increasing strength of the economy and institutions. Looking forward, ongoing economic reforms, supported by the International Monetary Fund, will mitigate some of Georgia's underlying credit weaknesses, further boosting credit strength over time. However, material banking sector and external vulnerability risks continue to constrain the rating,” reads the official statement from Moody’s Investor Service.
Yesterday Minister of Finance of Georgia Dimitri Kumsishvili said during a press conference that Georgia’s improved credit rating is a positive signal for foreign investors and that it will play a major role in attracting foreign investments and capital inflow in the country.
The company also noted that one of the reasons for the rating improvement is the ongoing process of diversification of trade and investment relationships through the Association Agreement and Deep and Comprehensive Free Trade Agreement with the European Union.
Moody’s Credit Rating Scale based on countries:
Aaa - Switzerland, USA, Denmark, Singapore, Germany and others.
Aa1 - Finland, Great Britain, Austria and others.
Aa2 - France, Hong Kong, Qatar and others.
Aa3 - Belgium, Chile, Taiwan and others.
A1 - China, Japan, Estonia and others.
A2 - Botswana, Poland, Slovakia and others.
A3 - Ireland, Latvia, Malta and others.
Baa1 - Oman, Slovenia, Thailand and others.
Baa2 - Panama, Philippines, South Africa and others.
Baa3 - Trinidad and Tobago, Hungary, Indonesia and others.
Ba1 - Azerbaijan, Russia, Morocco and others.
Ba2 - Georgia, Brazil and Croatia
Ba3 - Bangladesh, Tunis, Serbia and others.
B1 - Armenia, El Salvador, Jordan and others.
B2 - Lebanon, Mongolia, Nicaragua and others.
B3 - Egypt, Moldova, Pakistan and others.
Caa1 - Belarus, Barbados and others.
Caa2 - Ukraine, Cuba and others.
Caa3 - Venezuela.
C - Puerto Rico.