Thursday November 27, 2014 Search
Weather | Athens
14o C
8o 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)  
Lower provisions and energy costs boost Greeces PPC Q3 profit
Eurozone loans to private sector still contracting: ECB
Eurozone economic sentiment rises slightly in November
Bank of Cyprus posts 76 million euro nine-month profit
Greece says EU/IMF bailout exit could be delayed for technical reasons
Greece may have to delay by a few days or weeks its planned exit from an EU/IMF bailout by the end of the year, the country's deputy prime minister said on Thursday, citing "technical reason...
Ship with 700 migrants safely towed to Greek coast
Officials say a broken-down smuggling ship carrying 700 men, women and children trying to emigrate to Europe has been safely towed to just off the southern Greek island of Crete. Authorities...
Inside News
SOCCER
Atletico drubs Olympiakos 4-0, leaving Reds with slim chances of CL qualification
Atletico Madrid avenged its 3-2 defeat in Piraeus in September with a 4-0 win over Olympiakos on Wednesday, meaning the Greek champion only has mathematical hopes left for a spot in the next...
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
Inside Sports
COMMENTARY
Scraping together the 180 MPs will not be enough
Even if the coalition government was to scrape together the 180-MP majority it needs to elect a new President in the 300-seat House, skeptics say, what will change really? There is one evide...
EDITORIAL
Taking back whats stolen
A large group of public prosecutors and state officials (coming from various departments) have been working on major corruption cases. Of course it is their duty to do so, yet their actions ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Lower provisions and energy costs boost Greeces PPC Q3 profit
2. Eurozone loans to private sector still contracting: ECB
3. Eurozone economic sentiment rises slightly in November
4. Bank of Cyprus posts 76 million euro nine-month profit
5. Greece says EU/IMF bailout exit could be delayed for technical reasons
6. Ship with 700 migrants safely towed to Greek coast
more news
Today
This Week
1. Troika talks to continue after failure to wrap up negotiations in Paris
2. Greece scrambles to find food, shelter for 700 migrants on crippled ship
3. Chief suspect in Piraeus bar shooting arrested
4. Greek diplomat dies in fall under Thai train
5. Greece paralyzed by major strike, flights cancelled
6. Greek, German, Portuguese, Spanish debt to benefit most from ECB QE - ABN Amro
Today
This Week
1. Give Greece a chance
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Scientists expand excavation of ancient Amphipolis
4. Extremism from a bygone era
5. Piraeus nightclub shooting leaves 3 seriously injured
6. Coscos Greek unit adds multinational rail-freight client
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.