Moody’s Investors Service upgraded Greece’s long-term local currency (LC) and foreign currency (FC) issuer ratings to Ba1 from Ba3.
The rating agency also upgraded the LC senior unsecured ratings to Ba1 from Ba3, and the FC senior unsecured shelf and MTN programme ratings to (P)Ba1 from (P)Ba3. The FC other short-term rating has been affirmed at (P)NP. The outlook has been changed to stable from positive.
In its assessment, Moody’s said the two-notch 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. In particular, 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.”
FinMin Hatzidakis
The government will continue to be committed to its targets despite the difficulties, National Economy and Economics Minister Kostis Hatzidakis said late on Friday, welcoming Moody’s raising of Greece’s credit rating from Ba3 to Ba1.
In a statement, Hatzidakis said, “Greece’s credit upgrade by Moody’s, especially by two notches, is not just one more recognition of the government’s fiscal and overall economic policy. 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. We have achieved a lot in the economy the last four years. We are being judged every day, and there is no reason to waste the progress already made. Steadily, we shall continue to combine social sensitivity with economic responsibility.”
