Fitch Renewed the Estimation of Georgian Banks
The Rating Company – Fitch has renewed estimating 4 Georgian banks. In particular, the agency confirmed the ‘BB’ level of the Long-Term Issuer Default Rating (IDRs) of both ‘Bank of Georgia’ and ‘TBC Bank’ and changed the prognosis from ‘positive’ to ‘stable’.
The agency also approved the long-term credit of ‘Liberty Bank’ on ‘B+’ level, whereas ‘ProCredit Bank’ was estimated as ‘BB+’ level with the ‘stable’ prognosis as well.
In the case of TBC and BOG the worsening of the prognosis is explained by Fitch with significant risks, related to the rapid growth of loans and crediting of the foreign currency share.
Fitch’s prognosis and the long-term issuer default rating towards Georgian banks are as follows:
• ProCredit Bank BB+; Stable
• Cartu: B; Stable
• BasisBank: B+; Stable
• Halyk Bank: BB-; Positive
• Liberty Bank: B+; Stable
• Bank of Georgia: BB-; Stable
• TBC: BB-; Stable
The credit rating of banks, their financial situation, along with their sustainability, is related to the country’s sovereign rating, as well as to the rating of the owning companies.
Fitch divides the rating levels according to Latin letters, where the most negative estimation is the letter D, whereas the maximum is AAA. Concerning the ratings’ perspective, it can be negative, as well as stable and/or positive.