Credit Rating Agency Revises Georgia Outlook to Stable

Standard and Poor’s has revised its outlook on the government of Georgia to stable from positive owing to increased geopolitical risk, the credit rating agency said in a statement on November 21.

Standard and Poor’s gave a positive outlook to Georgia in an assessment unveiled last December.

But in a recent report the agency said Georgia’s weak external indicators are aggravated by tensions in its relationship with Russia, a key trading partner.

“The outlook change reflects Standard & Poor’s view that the geopolitical risks in the region have increased significantly and may impair positive trends in external liquidity, investor sentiment, and economic growth,” Luc Marchand, Standard & Poor’s credit analyst, said.

But he also said that risks are ?partly balanced by still strong economic prospects, underpinned by rapid reform, continued prudent fiscal policies and an increasingly market-oriented economic structure.”

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