Moody’s upgrades Greek outlook to ‘Positive’
Ratings agency Moody’s upgraded the outlook for Greece’s credit rating to “Positive” from “Stable” on Friday, despite maintaining its rating at Ba3 – three notches below the investment grade it has maintained since 2020.
It estimated that the Greek economy will record growth of 1.8% in 2023 and 2024, while noting that public debt will reach 162% of gross domestic product in 2023 and will fall below 150% of GDP by 2026.
A key factor that led to the change in the outlook to “Positive” from “Stable” is the prospect of a period of higher growth than in the past decade, partly thanks to improvements in governance and the effectiveness of financial and banking sector reforms that the rating agency notes are bearing fruit.
Combined with a stable and prudent fiscal policy, GDP growth will lead to a significant reduction in Greece’s debt burden in the coming years. The confirmation of the Ba3 rating balances the improvements observed in many areas of the country’s credit profile with the significant challenges ahead.
