Moody’s views Georgia Capital positively

Moody's Investors Service said it changed the outlook on Georgia Capital JSC to positive from stable and affirmed Georgia Capital's B1 corporate family rating and B1-PD probability of default rating.

The improved outlook follows Georgia Capital’s Wednesday announcement it launched a tender offer to buy part or all the outstanding $300 million of senior unsecured notes due March 2024, the agency said. The issuer also plans to sell up to $150 million of notes due 2028. Georgia Capital will use the proceeds with balance sheet cash to redeem in full the Eurobonds at make whole or through the tender offer.

The B1 rating on the Eurobonds is unchanged and will be withdrawn upon full redemption, which is expected to take place in early September, Moody’ said.

"The change of outlook to positive from stable reflects expectations for the extension of the maturity of Georgia Capital's debt through the issuance of the local bonds due 2028 and expectations that management will continue to execute on its demonstrated commitment to a more conservative financial policy, as well as a continued good track record of performance of the company's investment portfolio," said Sebastien Cieniewski, a Moody's vice president, senior credit officer and lead analyst for Georgia Capital, in a press release.

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