BAKU, Azerbaijan, November 12. Fitch Ratings has affirmed JSC Halyk Bank Georgia's Long-Term Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook, according to the agency's report.
The agency also affirmed the bank's Viability Rating (VR) at 'b+' and Shareholder Support Rating (SSR) at 'bb+'.
Fitch said Halyk Bank Georgia's Long-Term IDR is driven by potential support from its parent, Kazakhstan's Halyk Bank, which fully owns the Georgian subsidiary. The assessment reflects the parent's strong propensity to provide support, backed by its track record of capital and liquidity assistance, as well as reputational risks associated with a potential subsidiary default.
At the same time, Fitch revised the operating environment score for Georgian banks to 'bb'/Positive from 'bb'/Stable, citing solid economic growth and a strengthening sovereign credit profile.
The agency noted that Georgia's average GDP growth exceeded 8% in 2023–2025 and forecasts economic expansion of 7.5% in 2026, followed by a gradual slowdown in 2027–2028 towards the estimated medium-term potential of 5%.
Halyk Bank Georgia's impaired loans ratio declined to 7.7% at the end of the first half of 2026, from 8.2% at the end of 2025, although it remained above the levels of domestic peers rated by Fitch. The agency expects the ratio to decline further to around 7%–7.5% in 2026–2027, supported by higher lending growth.
Meanwhile, the bank's Common Equity Tier 1 (CET1) capital ratio reached 18.9% at the end of the first half of 2026, up 60 basis points from the end of 2025 on retained earnings and broadly stable risk-weighted assets. The ratio remained comfortably above the regulatory requirement of 16.4%.
Fitch expects the bank to maintain its CET1 ratio above 18% over the next two years despite higher balance-sheet growth.
