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Global rating agency Fitch Ratings has downgraded three Georgian banks’ support ratings to ‘5’ from ‘4’ and revised the banks’ support rating floors (SRFs) to ‘no floor’ from ‘B’, Trend reports citing Agenda.ge.
The affected banks are JSC TBC Bank (TBC), JSC Bank of Georgia (BOG) and JSC Liberty Bank (LB).
“We believe that the ability of the authorities to provide support is limited primarily because of the high dollarisation of the banking system, with 62% of total liabilities being denominated in foreign currencies (FC) at end-11M20. The banking system’s FC liabilities of $9.4 billion exceed the National Bank’s foreign-exchange reserves of $3.9 billion,” says Fitch.
All other ratings are unaffected, including the banks’ long-term issuer default ratings of ‘BB-‘ (TBC and BOG) and ‘B+’ (LB).
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