S&P will not confer ratings to Bank of Georgia any more. The ratings were recalled by will of Bank of Georgia, the influential rating agency reports.
Before, it had affirmed its ‘BB-/B’ long- and short-term counterparty credit ratings and its ‘ilA’ Israel national scale rating on the Bank of Georgia (BoG), with the outlook of Stable. According to the S&P press release, the bank has strong business position as the largest bank in the country, with a market share of 33% in terms of total assets and customer deposits; and a universal banking model with strong corporate business, complemented with well-developed franchise in retail banking.
At the time of the withdrawal, the outlook was stable, reflecting our view that the bank would likely maintain its business position and continue to consistently generate healthy earnings in the next 12-18 months, despite some negative pressure from the challenging operating environment in Georgia.
The GBC news agency has contacted Bank of Georgia to clarify reasons the commercial bank has rejected S&P ratings.
«In June 2016 two rating companies Moody’s and Fitch were selected for BGEO investment group. As a result, Bank of Georgia, a member of the investment group, gave preference to only Fitch and Moody’s. Appraisals and ratings of the mentioned rating companies fully satisfy requirements of Bank of Georgia and its investors», the bank management noted.