Fitch Ratings has revised the Outlooks on JSC Bank of Georgia’s (BOG) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Positive from Stable, while affirming both ratings at ‘BB’. The agency has also affirmed the bank’s Viability Rating (VR) at ‘bb’ and Government Support Rating (GSR) at ‘no support’.
The rating action follows Fitch’s revision of Georgia’s Long-Term IDR Outlook to Positive from Stable on October 30, 2026. Fitch considers Bank of Georgia’s credit profile to be highly correlated with that of the sovereign, given the bank’s dominant position in the domestic market. The Positive Outlook also reflects expectations that Georgia’s solid economic growth and improving sovereign credit profile will further strengthen the banking sector’s operating environment, support revenue and lending growth, and improve key credit metrics. Accordingly, Fitch has revised the outlook on Georgia’s banking sector operating environment to Positive from Stable.
Bank of Georgia’s ratings are driven by its standalone credit profile, reflecting its strong domestic franchise, robust profitability and high capital ratios. The agency noted that the bank accounted for 40% of Georgia’s banking sector assets at the end of the first half of 2026. Its loan portfolio is diversified across retail customers (49%), corporate clients (35%), and SME and micro-enterprise businesses (16%). Fitch also highlighted Georgia’s strong economic performance, with average GDP growth exceeding 8% in 2023-2025, and forecasts growth of 7.5% in 2026.
At the same time, Fitch pointed to several risks, including still-high loan dollarization, which stood at 42% at the end of the first half of 2026, as well as borrower and industry concentration, particularly in construction, real estate and hospitality. However, the agency expects asset quality to remain stable, with impaired loans staying slightly above 2% in 2H26-2027. Impaired loans stood at 2.3% of gross loans at the end of the first half of 2026.
Fitch also noted Bank of Georgia’s strong profitability, with operating profit averaging 6.6% of risk-weighted assets since 2022. The agency expects this indicator to remain at 5.5%-6% in the second half of 2026 and 2027. The bank’s Common Equity Tier 1 (CET1) capital ratio stood at 18.2% at the end of 1H26 and is expected to remain above 18% over the next two years. Fitch further expects the loans-to-deposits ratio, which stood at 95%, to remain below 100%, supported by a stable customer deposit base and a healthy liquidity position.
