Georgian financier Vasili Revishvili believes that Fitch Ratings effectively gave Georgia a positive credit outlook as an “advance,” allowing the country an opportunity to improve its political environment and performance in the World Bank’s Worldwide Governance Indicators. He made the remarks on the TV program Analytics.
According to Revishvili, Fitch’s decision reflects economic indicators, while also acknowledging concerns about the country's political situation and governance. He said the agency did not upgrade Georgia’s sovereign rating but changed its outlook from stable to positive, giving the country an opportunity to address existing shortcomings.
Revishvili stressed that improving governance and the political environment could have a tangible impact on Georgia’s borrowing costs. If the country eventually achieves investment-grade status, the spread between Georgian government bonds and US Treasury bonds of comparable maturity could decline significantly. “The ball is now in our court – we need to address what needs to be improved, particularly the political situation,” he said.
On October 30, Fitch Ratings affirmed Georgia’s sovereign credit rating at BB while revising its outlook from stable to positive, citing a range of economic and other factors.
