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.
