Fitch Ratings upgraded Greece’s credit rating from “BB” to “BB+”, one notch below investment grade.
The international ratings agency said in its schedule rating report that it had upgraded Greece’s sovereign rating to “BB+” with a stable outlook, which means it has joined major peers Standard & Poor’s and DBRS Morningstar in taking Greece just one notch below investment grade.
Immediately after the report’s issue, Greek Finance Minister Christos Staikouras stated that the rating “confirms that the national target for attaining investment grade within 2023 — with multiple benefits for the society and the economy — is feasible.”
The return of the country to investment grade, to take Greek sovereign bonds out of “junk status,” has since 2019 been one of the election pledges of the conservative government that is facing a general election this spring as its four-year mandate is coming to an end.
“This has been the 12th upgrading of the Greek economy in the last three-and-a-half years, despite successive external crises,” Staikouras said in a statement.
In its report, Fitch cited the improved fiscal prospects of the eurozone member state, its reduced risks in the credit sector with the diminishing of nonperforming loans and its structural momentum.
Moreover it cited the macroeconomic outlook with improved results in terms of its budget deficit and national debt, the speed of reforms, the deceleration of inflation and the stable cost of financing. ■