Credit ratings agency Fitch has put Greece back to investment grade status, upgrading the country’s long-term foreign-currency issuer default rating (IDR) to ‘BBB-‘ from ‘BB+’ with a stable outlook, it was announced late night Friday (Athens time).
Fitch Ratings is the fourth such agency (taken into account by the European Central Bank) to classify Greek bonds as investment grade, after Scope Ratings did so in August, DBRS Morningstar in September and S&P Global in October.
Fitch is also the second of the three biggest American credit agencies, after S&P, to revert Greece to investment grade, thus allowing more institutional investors to buy Greek bonds, thereby increasing capital inflows and helping to contain Greek State and corporate borrowing costs, it was reported on the day.
Greece’s favourable debt dynamics and commitment to fiscal consolidation, as well as a projected sharp downward trend in the general government debt/GDP ratio – thanks to solid nominal growth – are among the reasons cited by Fitch for lifting Greece’s economic status.
