Moody's changes Georgia's credit rating outlook to 'negative'

The international rating agency Moody's has changed its long-term credit rating outlook for Georgia in both national and foreign currency from "stable" to "negative."

Report informs citing the agency that Georgia's ratings have been affirmed at "Ba2."

"The decision to change the outlook to 'negative' reflects our assessment that risks to Georgia's institutional and governance stability are increasing in the context of more complex internal and geopolitical processes," the statement noted.

Moody's believes that the governance system in Georgia could weaken due to internal and geopolitical crises, increasing the risk of lower effectiveness in monetary and macroeconomic policies.

The agency views the ongoing suspension of the country's cooperation program with the International Monetary Fund (IMF) as evidence of reduced governance effectiveness.

At the same time, the agency affirms Georgia's ratings at the "Ba2" level, noting its strong economic and fiscal position.