Credit Rating Agency Revises Georgia Outlook to Stable
(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."