BAKU, Azerbaijan, May 26. Moody’s Ratings has assigned a Ba2 foreign-currency senior unsecured rating to Bank of Georgia’s planned issuance of US dollar-denominated senior unsecured notes, Trend reports.
The outlook on the rating remains negative.
According to Moody’s, the proposed notes will rank pari passu with the bank’s other unsecured and unsubordinated obligations.
The agency said the Ba2 rating reflects the bank’s standalone credit profile, including strong profitability supported by its established domestic market position and solid capitalization levels.
At the same time, Moody’s noted that the bank faces elevated asset risks linked to its sizable foreign-currency lending portfolio and rapid credit growth. The rating agency also pointed to high deposit dollarization and reliance on non-resident deposits as constraints on the bank’s funding profile, although these risks are partly offset by strong liquidity.
Moody’s added that the rating does not include additional uplift from potential government support, despite the bank’s systemic importance, because its adjusted credit profile is aligned with the sovereign rating of Georgia.
The negative outlook on the planned notes mirrors the negative outlook on Georgia’s sovereign rating, as well as on the bank’s long-term deposit and local-currency senior unsecured ratings.
