International credit rating agency Moody's has affirmed Georgia's Ba2 sovereign credit rating while upgrading the country's outlook from negative to stable.

According to the agency, Georgia's strong economic performance reduces risks associated with domestic and geopolitical challenges, providing the basis for the improved outlook. Moody's also emphasized that cooperation with international financial institutions enhances the effectiveness of the country's fiscal and monetary policies.

"We expect Georgia's economic growth to remain strong, driven by broad-based economic activity, domestic consumption, and investment. Robust economic growth and prudent public debt management will continue to strengthen the country's fiscal resilience. Georgia's strategic location and its role as a key link in the Middle Corridor will help attract investment flows from both the region and other countries. These strengths are further reinforced by the high effectiveness of fiscal and monetary policies," Moody's said.

The agency also noted that the National Bank of Georgia has already implemented several recommendations made by the International Monetary Fund (IMF).

"In the area of monetary policy, several IMF-recommended measures have already been implemented. These include steps to ensure a majority of non-executive members on the National Bank's Board, restrictions on discretionary financial transfers to the government, and changes to the Bank's organizational structure. In addition, the National Bank of Georgia is currently working on a legal framework that will introduce a collegial decision-making model and strengthen the qualifications of Board members in line with IMF recommendations," the Moody's Ratings report states.

According to Moody's, Georgia's strong economic growth, fiscal discipline, and declining public debt further strengthen the country's creditworthiness. The agency also raised its forecast for Georgia's economic growth to 6.4%.