Page 36 - GEORptJul19

The Georgia Stock Exchange (GSE) recorded a turnover value of GEL8,787.65 as of June 2018, according to CEIC data.
8.4 International ratings
Georgia - Rating agency
as of April 2019
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB (Stable)
Bond rating: S&P
BB- (Positive)
S&P revises Georgia’s outlook to positive, sees potential for country to outperform
International rating agency Standard &Poor's (S&P) has announced that it has revised the outlook for Georgia’s sovereign rating upwards from stable to positive.
The rating, currently in the non-investment speculative basket at BB-, would require a three-notch upgrade to become investment grade, however.
The positive outlook primarily reflects the agency’s view that Georgia's economic and external performance has the potential to outperform the current forecast over the next 12 months. S&P projects an annual growth rate of around 4% in the medium term. The improved outlook also reflects the country's continued compliance with the conditions of the existing funded IMF arrangement, the agency noted.
S&P said it could revise the outlook back to stable if weaker growth in Georgia's key trading partners, contrary to its expectations, appeared to be undermining the country's medium-term economic prospects and its external position. It could also revise the outlook back to stable or lower the ratings if Georgia's institutional arrangements weakened and led to less predictable policymaking, as well as a damaging of business confidence and growth prospects.
Conversely, S&P could raise the ratings if Georgia's economic performance proved stronger than present expectations (4% GDP growth this year and 3.5% in 2020). The agency could also raise the ratings if Georgia's external position strengthened, for example, as a result of stronger export performance
36 GEORGIA Country Report July 2019 www.intellinews.com