WASHINGTON: Greece’s credit rating has been upgraded by S&P to investment grade for the first time since 2010, citing “significant progress” the country has made in addressing its economic problems.
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S&P said in a statement on Friday that it is raising the nation’s credit rating for long- and short-term local and foreign currency sovereign credit ratings from BB+/B to BBB-/A-3.
As a result of its choice, it becomes the first of the three main US rating agencies to upgrade Greece’s credit rating from speculative to investment grade.
It justified its choice by noting that “Greece’s public finances are improving thanks to the budgetary consolidation efforts.”
“Significant progress has been made in addressing Greece’s economic and fiscal imbalances since the debt crisis in 2009-2015,” it noted.
S&P anticipates that the government will surpass its goal and produce a primary surplus of “at least” 1.2 percent of GDP this year, which will increase to 2.3 percent of GDP over the next three years.
The early-year general election that put Kyriakos Mitsotakis back in office “allows the government to continue to build upon past reform efforts” to make Greece competitive internationally, according to S&P.
We anticipate that additional structural economic and budgetary changes, along with significant EU funding, will enable strong economic growth in 2023–2026 and assist ongoing government debt reduction.
S&P’s choice was praised by Mitsotakis as “an important milestone.” “Proud of the acknowledgement of what our nation has accomplished. In a post on X, formerly known as Twitter, he stated, “We are determined to continue our reform agenda, a route that is attracting investment, creating employment, and delivering inclusive growth.