DBRS restores Greece to investment grade
DBRS Morningstar upgraded Greece’s credit rating to investment level on Friday, ending the country’s bonds “junk status” after 13 years.
The Canadian-based rating agency, one of the world’s four majors, became on Friday the first to bring Greece back to investment level since 2010.
In a statement after the North American markets closed, DBRS Morningstar announced the upgrading of Greece to BBB (low) with a stable outlook, from BB (high).
The development is of historic proportions for the Greek economy as it effectively puts an end to the long period when Greece did not enjoy the rating agencies’ confidence due to the decade-long financial crisis, the three bailout agreements with its creditors from the European Union and the International Monetary Fund, the capital controls etc.
Earlier in the year Japan’s R&I and Germany’s Scope Ratings had also restored Greece to investment grade, but they are not among the four major rating agencies that the European Central Bank takes into account when considering the rating of a country’s bonds.
The next rating decision concerning Greece is expected on Friday, September 15, by Moody’s that has Greece three notches below investment level.
Standard & Poor’s and Fitch Ratings will deliver their own verdicts later in the year, both having Greece within one step from investment grade.
