Georgia has advanced its position at a leading international credit rating agency. Moody's Investors Service upgraded Georgia's credit rating and changed the country's Ba3 sovereign rating outlook from "stable" to "positive", Georgia's Economy Minister said at today's Governmental meeting, reports GHN.
Minister Giorgi Kvirikashvili assessed this change as "very good and positive for the state". He said this change would make it easier for companies to attract credit resources. "This refers both to financial institutions and those companies who have direct credit relations with international partners," the Minister said.
Georgia's Prime Minister welcomed the Moody's Investor Service upgrade and congratulated Georgia on this. In a statement, Moody's Investors Service said Georgia's improved credit rating was influenced by the country's recent signing of the Association Agreement (AA), which included the Deep and Comprehensive Free Trade Area (DCFTA) agreement with the European Union (EU).
"The key driver of today's outlook change is the entering into force in September 2014 of Georgia's Deep and Comprehensive Free Trade Area (DCFTA) with the EU, which Moody's expects will attract further foreign direct investment (FDI) and bolster the country's export performance. This should in turn support an improvement in Georgia's external position over the medium term," read the statement.
"The affirmation of the Ba3 rating reflects the combination of external vulnerability and geopolitical risks in the near term, as well as the volatile nature of the Georgian economy." Data from global economic analysis company Trading Economics stated as of August 26, 2014, Standard and Poors credit rating for Georgia stood at BB-; Moody's rating for Georgia sovereign debt was Ba3 and Fitch's credit rating for Georgia was BB-.