BAKU, Azerbaijan, December 9. Fitch Ratings has revised the Outlook on Georgia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable, maintaining the IDR at 'BB', Trend reports.
This shift reflects rising political risks following the parliamentary elections in October 2024, where the ruling Georgian Dream party secured a significant victory, but the opposition refused to acknowledge the results.
Fitch highlighted that the political polarization could undermine investor confidence, increase the risk of external liquidity pressures, and disrupt Georgia's institutional framework. The situation remains fluid, and Fitch expects political risks to remain high in the near future.
Moreover, the political turmoil in Georgia has led Fitch Ratings to revise the country’s FDI outlook.
Fitch warns that continued political unrest could discourage foreign direct investment (FDI), which has already shown signs of decline. Inbound FDI fell by 34% in the first half of 2024, and further deterioration in Georgia’s relations with key Western partners could weaken the country's economic outlook.