Page 36 - GEORptMar19

The Georgia Stock Exchange (GSE) recorded a turnover value of GEL8,787.65 in June, declining from GEL103,819.70 in the previous month, according to CEIC data.
8.4 International ratings
Georgia - Rating agency
as of February 2019
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB (Stable)
Bond rating: S&P
BB- (Stable)
Fitch upgrades Georgia to BB on sound external balance, fiscal performance
International rating agency Fitch Ratings on February 22 upgraded Georgia's sovereign rating (associated with risk on default on long-term, foreign currency debt) to BB/stable from BB-, citing the country’s resilience to regional turmoil and progress in terms of fiscal consolidation and improving its external balance.
The progress was confirmed by Georgia’s smooth completion of quarterly reviews under the programme carried out with the International Monetary Fund, Fitch said in a press release.
The rating keeps Georgia in the non-investment class, above Serbia (which is more risky) but below Hungary (a better risk profile) in terms of sovereign risk.
The Georgian economy proved sturdy in the face of negative developments in 2018. Economic growth remained robust, the currency was relatively stable and the National Bank of Georgia (NBG) central bank built reserves despite a severe economic shock in Turkey and heightened sanctions risk in Russia, Fitch commented.
External imbalances are gradually easing. Georgia's current account deficit is structurally high, but Fitch estimated that it narrowed to 7.5% of GDP in 2018, despite the testing external environment.
Fitch forecast a further narrowing of the current account deficit as the recently launched funded pension pillar will likely encourage savings and the implementation of macro-prudential measures will lead to a deceleration in
36 GEORGIA Country Report March 2019 www.intellinews.com