Tbilisi hosts annual conference of Fitch ratings

On June 6th 2013, the international rating agency, Fitch Ratings hosted its annual conference for the investment community of Georgia at the Marriott Hotel, Tbilisi on June 6th.

The conference included discussions of the most topical issues relating to Georgian’s economic and banking sector, presenting a valuable opportunity for informal communication with representatives of regulatory bodies, Fitch analysts potential business partners and colleagues.

Presentation topics included:

I. Georgia's Sovereign Outlook: Looking for Stability and Sustainable Growth:
• Recent slowdown in growth -main causes;
• Motors of growth in next 2-3 years;
• Effects and opportunities of reopening the Russian market;
• Evaluation of monetary policy in light of continuing deflation;
• Discussion of dollarisation trends and possible greater exchange rate flexibility;
• Discussion of fiscal policy settings, including composition of funding;
• Long-term trends in current-account deficit and external debt;
• Short and long term political developments.

II. Georgian banks: Performance Prospects in a Slower Growth Environment:
• Limited tangible impact of growth slowdown in banking sector to date;
• Search for business volumes and loan yield in SME sector;
• Impact of competition on margins and credit underwriting;
• Liquidity is still good, but capital managed more tightly to regulatory requirements.

In his presentation on Fitch’s Credit Ratings in CIS and Georgia, Dmitri Surkov, Regional Head of Russia/CIS and the Black Sea Region, said that Fitch maintains 300 public ratings in the CIS and Georgia, including 6 sovereign, 126 financial institutions, 99 corporate, 42 international public finance, 14 insurance and 13 structured finance.

In their joint presentation on “Georgian banks: Performance Prospects in a Slower Growth Environment,” James Watson CFA, Managing Director, Financial Institutions, Fitch Ratings and Lindsey Liddell, Director, Financial Institutions, Fitch Ratings focused on the impact of a growth slowdown in the sector, increasing competition, gradually decreasing dollarization, sovereign/macro issues are key matters for ratings

Matteo Napolitano, Director, Sovereign and IPF, Fitch Ratings delivered a presentation on “Georgia's Sovereign Outlook: Looking for Stability and Sustainable Growth” where he provided elements of sovereign credit analysis with structural factors, public finances, financing flexibility and macro. According to the 2013 growth forecast, Georgia appeared to be in the middle of the rating with the real GDP, % change year-on-year, etc. between Tunisia and Serbia.

Established in December 24, 1913, Fitch celebrates its 100th anniversary this year.