Moody's downgrades outlook on Georgia's ratings

https://sputnik-georgia.ru/20220513/moodys-ukhudshilo-prognoz-po-reytingam–gruzii–266612245.html

Moody’s downgrades outlook on Georgia’s ratings

Moody’s downgrades outlook on Georgia’s ratings

Aggravation of geopolitical tensions will not prevent the Georgian authorities from implementing a long-term program of economic reforms, the Agency believes 13.05.2022, Sputnik Georgia

2022-05-13T09:01+0400

2022-05-13T09:01+0400

2022-05-13T09:01+0400

Georgia

news

economy

/html/head/meta[@name=”og:title”]/@content

/html/head/meta[@name=”og:description”]/@content

https://cdnn1.img.sputnik-georgia.com/img/07e5/06/0f/252028518_0:131:3000:1819_1920x0_80_0_0_b10dff275d77d3a6a43fc9c3077876f0.jpg

TBILISI, May 13 – Sputnik. International rating agency Moody’s Investors Service (Moody’s) has affirmed the long-term issuer ratings of the Georgian government in local and foreign currency at the level of Ba2 and with a “negative” outlook, the agency said. including the possible extension of the military conflict into Georgia and the subsequent significant and sustained impact on the economic and financial outlook, will affect the outlook. The possibility of such a conflict, however small, could itself have a negative impact on Georgia’s creditworthiness, analysts said. factors related to the COVID-19 pandemic and offset the negative economic impact of the slowdown in regional growth due to the Russian-Ukrainian conflict. The World Bank lowered its growth forecast for the Georgian economy due to the situation in Ukraine >>Analysts at Moody’s believe that the escalation of geopolitical tensions will not prevent the Georgian authorities from implementing a long-term program of economic reforms. Moody’s forecasts a 3.8% increase in Georgia’s real GDP in 2022. The potential for economic growth in the next few years is estimated at 4-5%.

Sputnik Georgia

[email protected]

+74956456601

MIA “Rosiya Segodnya”

2022

Sputnik Georgia

[email protected]

+74956456601

MIA “Rosiya Segodnya”

News

en_GE

Sputnik Georgia

[email protected]

+74956456601

MIA “Rosiya Segodnya”

https://cdnn1.img.sputnik-georgia.com/img/07e5/06/0f/252028518_329:0:3000:2003_1920x0_80_0_0_a7a443b5da4746e99058fdd568e7bd00.jpg

Sputnik Georgia

[email protected]

+74956456601

MIA “Rosiya Segodnya”

Sputnik Georgia

[email protected]

+74956456601

MIA “Rosiya Segodnya”

georgia, news, economy

subscribe to

Telegram

Aggravation of geopolitical tensions will not prevent the Georgian authorities from implementing a long-term program of economic reforms, the Agency believes

TBILISI, May 13 – Sputnik. The international rating agency Moody’s Investors Service (Moody’s) has confirmed the Georgian government’s long-term issuer ratings in local and foreign currencies at Ba2 with a “negative” outlook, the agency said.

“The decision to change the outlook on Georgia’s rating to negative reflects the heightened risks of geopolitical developments” in connection with the situation in Ukraine, “given the ongoing, albeit “frozen”, tensions between Georgia and Russia over South Ossetia and Abkhazia,” the statement reads. message.

Although not Moody’s base case, the crystallization of these political risks, including the possible spread of military conflict to Georgia and the subsequent significant and sustained impact on the economic and financial outlook, will affect the outlook.

The possibility of such a conflict, however small, could itself have a negative impact on Georgia’s creditworthiness, analysts say.

The rating affirmation is driven by the strong underlying performance of the country’s financial and monetary institutions, which is likely to allow continued sound macroeconomic policy in response to any further negative factors related to the COVID-19 pandemic and offset the negative economic impact of the slowdown in regional growth due to the Russian- Ukrainian conflict.

The World Bank lowered the growth forecast for the Georgian economy due to the situation in Ukraine >>

Analysts at Moody’s believe that the aggravation of geopolitical tensions will not prevent the Georgian authorities from implementing a long-term program of economic reforms.

Moody’s forecasts Georgia’s real GDP to rise by 3.8% in 2022. The potential for economic growth in the next few years is estimated at 4-5%.

Source

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more