BUSINESS

Moody's upgrades Greece's government bond rating to Caa3

Ratings agency Moody's has upgraded Greece's credit rating, citing improved results in the crisis-hit country's economic adjustment program.

The agency late Friday announced the two-notch upgrade from C to Caa3 — still well below investment grade — in a move seen as a boost for the government that has promised to end a crippling recession and return to international markets next year.

The rating upgrade reflects the country's significant fiscal consolidation, improvement in its medium-term economic outlook and a significant reduction in the government's interest burden, Moody's said.

The news was announced hours after the government said talks with bailout out creditors had hit snags, pushing back negotiations on cost-cutting reforms for at least a week.

[Combined reports]

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