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Global ratings agency Moody\u2019s has upgraded Greece\u2019s rating to \u201cBaa3\u201d from \u201cBa1\u201d, citing quicker-than-expected improvement in public finances and the country\u2019s greater resilience to potential future shocks.<\/p>\n
\u201cBased on the government\u2019s policy stance, institutional improvements that are bearing fruit, and a stable political environment, we expect Greece to continue to run substantial primary surpluses, which will steadily decrease its high debt burden,\u201d Moody\u2019s said in a statement.<\/p>\n
Since 2020, the nation\u2019s debt \u2013 the highest in the eurozone \u2013 has shrunk by more than 40 percentage points, reaching 154% of its gross domestic product in 2024, and is projected to drop further by the end of this year.<\/p>\n
Greek banks are steadying and returning to profit after being nationalized following the 2009 financial meltdown caused by the country\u2019s debt crisis, which put them in a vulnerable position, requiring several capital injections from the government.<\/p>\n
Last week, DBRS upgraded Greece\u2019s credit rating to \u201cBBB\u201d from \u201cBBB low\u201d, two notches above the investment grade, citing a healthier banking sector and the continued reduction in the country\u2019s general government debt ratio.<\/p>\n
The agency also revised Greece\u2019s outlook to \u201cstable\u201d from \u201cpositive\u201d, reflecting a balance between persistent credit challenges that are slow to improve and the country\u2019s institutional stability, which supports positive prospects.<\/p>\n
Deputy Prime Minister Kostis Hatzidakis welcomed the move.<\/p>\n
\u201cI am pleased that my last statement as Economy and Finance Minister concerns the upgrade of the Greek economy to investment grade by Moody\u2019s,\u201d he said.<\/p>\n
\u201cToday\u2019s upgrade marks the end of a major cycle for the Greek economy and certifies the country\u2019s return to European normality. It is the result of the systematic effort made over the last 5.5 years, which was not easy, amidst international crises and geopolitical instability. And it is obviously a success not only for the government, but for all Greeks.\u00a0[Reuters, AMNA]<\/p>\n<\/p><\/div>\n