Moody’s lifted Greece’s sovereign-credit rating two notches to Ba1 from Ba3, with stable outlook, just one step away from the investment grade status. 

 

The upgrade, “reflects Moody's view that the Greek economy, public finances, institutions, and the banking system are witnessing profound structural change that will support a continued material improvement in credit metrics and resilience to future potential shocks,” the rater said. 

 

The government's parliamentary majority following the June elections “provides a high degree of political and policy certainty for the coming four years, fostering the ongoing implementation of past reforms and the design of further structural reforms, which supports Moody's expectation for further economic and fiscal strengthening,” Moody’s argued. 

 

The agency expects  Greece’s GDP to grow an average 2.2% annually in 2023-27 driven by investment and consumption, a “very significant improvement,” while the country’s debt is likely to fall to around 150% of GDP as early as 2024.  

 

Finance Minister Costis Hatzidakis hailed the double-notch upgrade by Moody’s, saying that the government will continue to be committed to its targets despite difficulties.  

 

The upgrade “it is mostly proof that the government must remain committed to a policy of fiscal responsibility, a policy which - despite difficulties - it will continue to be focused on the targets set and on achieving the respective primary surpluses,” Hatzidakis said in a statement late Friday. 

 

 

Earlier in the month, Canadian-based DBRS Morningstar lifted Greece’s credit rating to investment-grade status to BBB (low) from BB(high). 

 

(Economy)