Identifier
Created
Classification
Origin
05TBILISI3216
2005-12-09 13:18:00
UNCLASSIFIED
Embassy Tbilisi
Cable title:  

S&P RATES GEORGIA AT B+ LONG TERM, B SHORT TERM

Tags:  EFIN ECON GG 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS TBILISI 003216 

SIPDIS

DEPT PLEASE PASS EB/IFD/DIA

E.O. 12958: N/A
TAGS: EFIN ECON GG
SUBJECT: S&P RATES GEORGIA AT B+ LONG TERM, B SHORT TERM


UNCLAS TBILISI 003216

SIPDIS

DEPT PLEASE PASS EB/IFD/DIA

E.O. 12958: N/A
TAGS: EFIN ECON GG
SUBJECT: S&P RATES GEORGIA AT B+ LONG TERM, B SHORT TERM



1. On December 6, Standard & Poor's Ratings Services assigned
its 'B ' long-term and 'B' short-term sovereign credit
ratings to the government of Georgia. This is Georgia's
first sovereign credit rating. S&P says the ratings are
"supported by the government's strong political commitment to
prudent financial policies and market-oriented structural
changes, including tax reforms and the recent acceleration of
privatization. The ratings are constrained by weak external
liquidiy, still-high inflation, and substantial
infrastructure development needs, in the context of a poor
institutional framework and political uncertainty arising
from regional conflicts."


2. Comment: GoG officials were pleased with the December 6
rating, which puts a stamp of approval on their recent
efforts. According to a US Treasury advisor to the GoG,
S&P's "outlook positive" distinction means the rating can be
reviewed soon. End Comment.
TEFFT