Economist Akaki Tsomaia believes that investors currently entering Georgia are less concerned with international credit rating reports and instead base their decisions on other, more subjective factors. He made the remarks to Business Course while commenting on Fitch Ratings’ latest assessment of Georgia’s sovereign rating.
According to Tsomaia, improving economic indicators alone is not enough to strengthen the country's credit rating. Risk assessments also depend on political factors, including institutional independence, the rule of law and an independent judicial system.
“Investors who specifically follow Fitch ratings are not currently coming to Georgia. Those investing in the country today are well aware of its political and economic environment. They invest because, from their perspective, doing business in Georgia is ‘well-organized’ – that is the reality,” Tsomaia said.
Fitch Ratings recently affirmed Georgia’s sovereign rating at BB while upgrading its outlook from stable to positive. The agency noted the country's continued economic and fiscal resilience, although investor sentiment and political risks have constrained rating improvements for the past seven years.
