Fitch Affirms Georgia's 'BB-' Rating; Outlook Stable

(RTTNews) - Fitch Ratings affirmed its rating on the Georgian economy at 'BB-', and maintained the Stable outlook, saying that the upside and downside risks to the rating are currently well balanced.

The agency also confirmed the ratings on Georgia's senior unsecured foreign and local currency bonds at 'BB-'. The Country Ceiling has been affirmed at 'BB'.

Fitch said that the completion of the electoral cycle has demonstrated that Georgia's institutions can channel political change, but the political scene is still relatively fragmented.

The firm forecasts that Georgia's public and private investment will pick-up in 2014, supporting an acceleration of GDP growth to 5 percent, which is closer to the average for 2010-12.

The current account deficit, which eased in recent months on the back of improvement in exports, is expected to rise in 2014-15. The fiscal deficit is estimated to have shrunk to 2.4 percent of GDP this year.

Fitch, meanwhile, warned that a renewed widening of the current account deficit, combined with a fall in capital inflows could lead to a weakening in the exchange rate, posing a risk to the current rating.