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Credit Rating Agency Revises Georgia Outlook to Stable

Georgia Materials 22 November 2006 13:33 (UTC +04:00)

(civil.ge) - Standard and Poor's has revised its outlook on the government of Georgia to stable from positive, owing to increased geopolitical risk, the credit rating agency said in a statement on November 21.

Standard and Poor's gave positive outlook to Georgia in its assessment unveiled last December, reports Trend.

But in a recent report the agency said Georgia's weak external indicators are aggravated by tensions in its relationship with Russia, a key trading partner.

"The outlook change reflects Standard & Poor's view that the geopolitical risks in the region have increased significantly and may impair positive trends in external liquidity, investor sentiment, and economic growth," Luc Marchand, the Standard & Poor's credit analyst, said.

But he also said that risks are partly balanced by still strong economic prospects, underpinned by rapid reform, continued prudent fiscal policies and an increasingly market-oriented economic structure."

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