Moody’s revises Georgia banking outlook to stable

Moody's Ratings has revised the outlook on Georgia’s banking system to stable from negative, citing the country’s macroeconomic resilience and balanced political and geopolitical risk profile.

In a newly published report, the agency said the outlook change reflects sustained economic strength and improving financial sector fundamentals. Moody’s forecasts real GDP growth of around 5.5% in 2026 and 2027, a pace expected to underpin robust credit expansion and sustain a healthy business environment, Caliber.Az reports. 

The agency noted that asset quality across Georgia’s banking sector is likely to remain resilient. Strong economic performance and steady household income growth are projected to support borrowers’ repayment capacity, limiting pressure on banks’ loan portfolios.

Capital buffers are expected to remain adequate, supported by stringent regulatory standards and solid internal capital generation. Moody’s also anticipates profitability will stay high, reinforcing the sector’s overall stability.

The report further highlighted continued deposit de-dollarization and the rebuilding of foreign currency reserves by the National Bank of Georgia, developments seen as strengthening financial system resilience.

Georgia’s banking system currently carries a Ba2 rating, placing it in the non-investment-grade category, but the revised stable outlook signals confidence that risks to the sector are now balanced over the medium term.

By Sabina Mammadli