Thursday March 5, 2015 Search
Weather | Athens
20o C
11o 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)  
Industrial products offset agricultural exports losses
BoC disposing of 41 properties across Greece
RAE offers gift to natural gas power plants
Emergency intervention by BoG to acquire T-bills
Police, ministry dodge blame for migrants order
The Greek Police and the Interior Ministry on Wednesday both dodged the blame after new police guidelines on migration control were issued and then revoked within a few hours following a veh...
Speaker says laws may not stand
Parliament Speaker Zoe Constantopoulou suggested on Wednesday that some laws voted by less than 151 of 300 MPs when Golden Dawn MPs being held in pretrial custody were not allowed to cast ba...
Inside News
SOCCER
Super League restarts, but behind closed doors
Deputy Minister for Sports Stavros Kontonis announced on Wednesday the resumption of the Super League this weekend after it was suspended last week following crowd trouble at the Athens derb...
SOCCER
Marinakis fines Olympiakos players
Olympiakos president Evangelos Marinakis on Monday fined the team 500,000 euros for disappointing performances and called on them to make a sacrifice to win trophies or leave. "Olympiakos ...
Inside Sports
FOCUS
Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
Strapped for cash and under pressure to deliver on reforms, Greece's new radical government has ruffled feathers in Brussels by not respecting the diplomatic niceties of the negotiating tabl...
COMMENTARY
Up the creek without a paddle
One of the issues that dominated the countrys pre-election debate was whether SYRIZA, which eventually won the vote, had worked out a plan B. It was clear from the start that its much-hyped...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Industrial products offset agricultural exports losses
2. BoC disposing of 41 properties across Greece
3. RAE offers gift to natural gas power plants
4. Emergency intervention by BoG to acquire T-bills
5. Valavani offers debt penalty write-off
6. Police, ministry dodge blame for migrants order
more news
Today
This Week
1. Up the creek without a paddle
2. Greek officials have ruffled feathers in Brussels for not having good diplomatic manners
3. Panousis says no official decision on undocumented migrants
4. More Germans booking holidays in Greece, tourism chief says
5. For Greece, a lesson from Ireland, Kenny says
6. ECB glimpse of Cyprus debt shows limits of bank cleanup
Today
This Week
1. Greece to make international protest over Turkey reserving Aegean air space
2. A fierce battle looms
3. SYRIZA feeling the pain
4. The Greek tax drama
5. The unlikely winners of Greece's surrender on euro
6. Tsipras reversal draws Greek sympathy as party rumblings rise
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.