Page 32 - GEORptMay18

investments like real estate or large consumer goods. The Georgian middle class, while growing, does not have the sufficient investment capital yet to become a sizeable financier of the private sector.
Furthermore, the Georgian currency has had a chequered performance since 2014. Between 2014 and 2015, it depreciated by 40% against the dollar. Although it has somewhat recovered since, more recent but short-lived waves of depreciation have continued to concern investors.
As a result, GSE does not yet offer sufficient financing potential to incentivise large Georgian corporations, such as TBC Bank or Bank of Georgia, to issue equity on it; the two lenders have chosen to go public in London instead.
At the same time, Georgia has become an attractive investor destination. Thanks to sustained growth rates of some 3% per year in 2015-2016 (which are expected to increase to 4.5% in 2018), investor-friendly policies, numerous free trade agreements, and close relations with the EU, but also with Iran, Turkey and Central Asian countries, Georgia is on a growth wave that could very well be reflected in its capital market soon.
The GSE recorded a turnover value of GEL111,530 in January this year, declining from GEL 275,472 in December. The highest turnover value of GEL4,163,201 was seen in May.
8.4 International ratings
Georgia - Rating agency
as of March 2018
Bond rating: Moody’s
Ba2 (Stable)
Bond rating: Fitch
BB- (Positive)
Bond rating: S&P
BB- (Stable)
Fitch upgrades Georgia outlook to ‘positive’ says economy ministry
Fitch Ratings has upgraded Georgia's outlook from 'stable' to 'positive', while reaffirming the country's sovereign rating at 'BB-', the Georgian economy ministry announced in a statement on March 19. The ratings agency has yet to publish a report on the upgrade.
According to the ministry's statement, the "revision of the outlook to positive
32 GEORGIA Country Report May 2018 www.intellinews.com