BAKU, Azerbaijan, September 3. Moody’s Ratings has assigned a first-time B1 long-term corporate family rating to Georgia’s Silk Road Group Holding LLC, the diversified parent company of telecom operator Silknet, with a stable outlook, Trend reports.
The agency also rated the company’s planned $400 million senior unsecured notes at B1.
Proceeds from the bond issue will mainly be used to refinance existing debt, including Silknet’s $300 million notes due in 2027, and to support capital expenditure in telecom and real estate projects.
Silk Road Group operates in telecommunications, hospitality, real estate development, and energy. Telecom subsidiary Silknet generates over 65% of group revenue and 85% of cash flow, benefiting from strong market share and a well-developed network. The group also owns five hotels and two casinos and is developing major real estate projects in Batumi and Tbilisi.
Moody’s said the rating reflects the company’s solid position in Georgia’s telecom market, steady revenue growth, and high margins, though it remains constrained by its relatively small scale, single-country exposure, and reliance on dollar debt against lari-denominated income.
The agency expects Silk Road Group’s revenue to grow in the mid-to-high single digits over the next two years, supported by telecom operations and new hospitality assets such as the Telegraph Hotel in Tbilisi. EBITDA margins are projected at around 46–47%, with leverage gradually declining. Free cash flow is expected to turn positive from 2026 as large capital investments taper off.
Moody’s noted that liquidity is adequate, with 428 million Georgian lari ($157 million) in cash as of mid-2025, but highlighted risks from unhedged foreign-currency debt and upcoming shareholder obligations.