DBRS confirms Greece’s investment grade and Stable trend
DBRS Morningstar confirmed on Friday night Greece’s credit rating at BBB (low) with a stable outlook, having been the first major agency last year to restore the country’s investment grade.
The Canada-based firm stated that its rating reflects its view that the risks in Greece are fairly balanced.
It added that after the 5.6% growth rate in 2022, the economy expanded 2% last year and is likely to remain on that pace for this and next year too.
Crucially, DBRS noted that the increase of the primary budget surplus to over 2% of the gross domestic product in 2024 and 2025 (from 1.1% in 2023) is expected to help drive the Greek debt to below 150% of GDP, from 160% of GDP last year.
DBRS became last September the first rating agency among those that the European Central Bank takes into account in its Eurosystem Credit Assessment Framework to bring Greece back to investment level. It was followed by Standard & Poor’s and Fitch Ratings, while in November German agency Scope Ratings, that had restored Greece’s investment grade before DBRS, also became one of the agencies the ECB takes into account.
That means the only agency from the above group not to have brought Greek bonds out of “junk” status is Moody’s, which next Friday, on March 15, is scheduled to deliver its new verdict on the Greek rating.
