Economist Giga Bedineishvili links Georgia's failure to achieve an investment-grade sovereign credit rating to the country's political situation, following Fitch Ratings' decision to maintain Georgia's rating at BB while upgrading its outlook from stable to positive.
Speaking to TV program Business Course, Bedineishvili said that despite strong economic growth and manageable public debt levels, these factors alone are insufficient to improve the country's credit rating. He argued that political instability, concerns over judicial independence and political repression remain major obstacles.
According to the economist, credit ratings directly affect investor confidence and borrowing costs. Georgia's non-investment-grade status increases interest rates on sovereign loans and Eurobonds, raising the risk premium demanded by international investors.
Bedineishvili warned that higher financing costs make fewer investment projects financially viable, potentially discouraging foreign investors from investing in Georgia. He stressed that political stability, the rule of law and stronger institutions are essential for the country to reach the investment-grade BBB level.
