Georgia, Tbilisi, Oct. 7 / Trend N.Kirtzkhalia /
Moody's Investors Service on Wednesday assigned the first-time Ba3/Not-Prime foreign and local currency issuer ratings to Georgia, with a stable outlook.
Finance Minister Kakha Baindurashvili said this category by one level higher than the ratings of other international rating agencies Fitch and Standard & Poor's.
"Moody's published credit rating in the category A3 for the first time. If we translate the category A3 into the language of Fitch and Standard & Poor's, then this is the level of assessment, which Georgia had before the August 2008," Baindurashvili said.
He said that Moody's rating reflects the country's progress in building the social, political and economic institutions, the formation of a healthy market, which analysts estimate as a unique opportunity for the region. Baindurashvili noted that the rating will help Georgia attract investment.
On the other hand, the rating company noted an adequate response by the Georgian government to the global financial crisis.
"On this backdrop, Georgia coped with the decline of foreign direct investments and managed to retain acceptable options in the debt service" the rating agency said.
The rating action reflected Georgia's marked progress in building institutional capacity, attracting substantial capital inflows and boosting growth, while keeping government debt at affordable levels, said Anthony Thomas, Vice President in Moody's Sovereign Risk Group.
While unsettled relations with Russia are obviously a risk factor for the rating, the outlook for economic growth would be challenged if private capital inflows do not resume, Moody's said.