Moody’s Upgrades the Outlook on Georgia’s Banking System from Negative to Stable

International credit rating agency Moody's Ratings has revised the outlook on Georgia’s banking system (Ba2) from negative to stable.

In its published report, Moody’s states that the change in outlook reflects the country’s macroeconomic resilience and a balanced assessment of political and geopolitical risks. Moody’s expects real GDP growth of approximately 5.5% in 2026 and 2027, which is anticipated to support robust credit activity and contribute to a healthy business environment.

The report notes that asset quality in the banking sector is expected to remain resilient. Strong economic growth and healthy household income dynamics are projected to support borrowers’ repayment capacity.

Capital buffers are expected to remain adequate, supported by stringent regulatory requirements and strong internal capital generation. Profitability is also projected to remain high.

The report further highlights that deposit de-dollarization has continued, and that the National Bank of Georgia has rebuilt its foreign currency reserves.