Research Update: Georgia (Government of) Outlook Revised To Stable From Positive; Rating Affirmed At 'B+' May 08
- ID: 1806866
- May 2008
- Region: Georgia
- Standard & Poors
On May 5, 2008, Standard & Poor's Ratings Services revised the outlook on its long-term ratings on the Government of Georgia to stable from positive, on further deterioration of relations with The Russian Federation (BBB+/Positive/A-2 foreign currency sovereign credit ratings) as militarization of the separatist regions increases. At the same time, we affirmed our 'B+' long-term and 'B' short-term ratings on the state. The decision by Russia to increase its forces stationed in South Ossetia and Abkhazia will escalate regional tensions and further complicate Georgia's aspirations to membership in the North Atlantic Treaty Organization (NATO). The move is also likely to pressure Georgia's fiscal performance this year, potentially interrupting financial inflows to its expanding economy. The failure of the Russian...
Companies mentioned in this report are: Georgia (Government of)
Action: Outlook: Stable
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Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
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