Fitch Upgrades Georgia to `BB-`; Outlook Stable
Fitch Ratings has upgraded Georgia`s Long-term foreign and local currency Issuer Default Ratings (IDR) to `BB-` from `B+`. The Outlooks on the ratings are Stable - Georgian Prime Minister Nika Gilauri and the Minister of Finance, Dimitri Gvindadze reported at the press conference today.
According to PM, the company has considered the fact that Georgia has the tendency of foreign debt reduction, investments are made in infrastructure, export is diversified and the business climate for investors is attractive.
"The upgrade reflects Georgia`s strong growth performance, the government`s progress in reining in the fiscal deficit, a reduction in inflation and a rise in foreign exchange reserves," says Charles Seville, Director in Fitch`s Sovereign team.
Georgia has reduced its budget deficit to an estimated 3.7% of GDP in 2011, from 6.6% of GDP in 2010. The recently-passed 2012 budget targets a deficit of 3.6% of GDP and the high share of capital spending and the government`s current surplus gives it further flexibility if needed.
`Georgia is in the list of the countries, the ratings of which have been improved by Fitch ratings and this has occurred in the situation, when the ratings of other countries are falling gradually. This is a great success of Georgian government and the economics and it confirms the ability of the government to control these processes. We are represented as an attractive country attracting investments and naturally, this will encourage the process of making new jobs,` Gilauri said.