Wednesday May 27, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Moody's upgrades Greece by two notches

Moody's raised Greece's sovereign credit rating late on Friday and gave it a stable outlook, saying it believed the government's fiscal position had improved significantly.

The positive comments boost expectations that Greece's government may tap bond markets again this year after two sales in April and July following a four-year exclusion since it was bailed out by the European Union and the International Monetary Fund.

"The first factor behind the upgrade of Greece's rating is Moody's strengthened expectation that the general government debt to GDP ratio will start declining in 2015," Moody's said.

"The government's progress in fiscal consolidation under its economic adjustment program underscores the improvement in the debt trajectory," it said in a statement raising its rating by two notches from 'Caa3' to 'Caa1'.

Fitch assigns Greece a B credit rating, while S&P rates it B-/B. All three credit ratings are still in junk territory, reflecting a high debt level of about 175 percent of the country's gross domestic product.

Moody's expects Greece's debt to GDP ratio to decline in 2015 after peaking this year at around 179 percent of GDP. The ratings agency said Greece's short-term debt rating is unaffected and remains "Not Prime."

Greece, which has been bailed out twice by the EU and the IMF with nearly 240 billion euros in rescue loans, is expected to begin negotiating further debt relief in the fall.

In September, it will undergo the latest checkup by inspectors from its foreign lenders on whether it is meeting the commitments attached to its bailout before further aid is disbursed.

Moody's said Greece's structural reform drive had "mixed results" to date, but praised the government's efforts on labor market reforms and in liberalizing some areas of the product markets.

"These reforms have led to wage and price adjustments, which far outstrip adjustments elsewhere in the euro area periphery," it said.

Greece has enjoyed a turnaround in investor sentiment in recent months as it begins to emerge from a protracted recession.

After nearly crashing out of the euro zone in 2012, the country expects to return to economic growth this year following a six-year depression that has shrunk its economy by a quarter.

In April, it raised 3 billion euros after attracting offers of about 20 billion euros. That was followed by a second sale in July, when it raised 1.5 billion euros with the sale of a three-year bond, though less than the 2.5 billion to 3 billion euros expected.

Still, Moody's warned that a "continuing, high level of political uncertainty" in the country constrained its rating at the Caa level and did not rule out early elections in the first quarter of 2015.

"The prospect of early elections, the result of which are highly uncertain, increases the risk of delays in policy implementation at a critical juncture of the economic adjustment program," Moody's said.

[Reuters]

ekathimerini.com , Saturday August 2, 2014 (12:22)  
EU funds at risk due to payment halt by the state
Half of Greeks cover their needs from their deposits
Greece reaps 2 billion euros per year from cruise sector
Political, economic instability turns German tourists away
Kareli trial postponed
The trial of thirteen correctional officers in connection with the death of Albanian inmate Ilie Kareli at Nigrita Prison in northern Greece was postponed on Wednesday after the defense cite...
FOCUS
Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
When the IMF’s point man on Greece, Poul Thomsen, rebuffed the nation’s proposal in December to unlock more bailout funding, he wound up making his job even tougher. The Greek government’s f...
Inside News
SOCCER
AEK Athens returns to top league after financial collapse
Greek club AEK Athens has just returned to the country's top soccer league, two years after financial collapse sent it to a lower league. One of the country's largest clubs, AEK sealed its s...
SOCCER
Berg brace gives Panathinaikos four-point lead
Panathinaikos beat Atromitos on Sunday and took advantage of the goalless draw between PAOK and Asteras Tripolis to open a four-point gap from PAOK at the top of the Super League play-off mi...
Inside Sports
COMMENTARY
Romantic notions meet reality
Before the elections, there was a considerable number of people who totally disagreed with the ideas and program put forward by SYRIZA, but they expected that the leftist party would, at lea...
EDITORIAL
Solving the Gordian Knot
The leftist-led government, as well as the country, have both been seriously damaged and exposed to risk from the evident indecision and repeated contradictions dogging the ongoing negotiati...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Kareli trial postponed
2. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
3. AEK Athens returns to top league after financial collapse
4. EU funds at risk due to payment halt by the state
5. Half of Greeks cover their needs from their deposits
6. Greece reaps 2 billion euros per year from cruise sector
more news
Today
This Week
1. Romantic notions meet reality
2. Solving the Gordian Knot
3. Target of Greek scorn shapes nation’s fate as IMF’s storm-chaser
4. Kareli trial postponed
5. IMF's Blanchard says Greek budget proposals not enough
6. Germany sees progress on Greece, EU officials to confer on Thursday
Today
This Week
1. Conspiracy madness
2. National self-awareness put to the test
3. Albanian demarche raises concerns about possible territorial claims over Greece
4. Hotel contracts with a ‘Greek default clause’
5. Neither Grexit nor a dual currency will solve Greece’s problems
6. Merkel said to plan address for Greece if deal reached
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.