ECONOMY

Rating firms speak of favorable outlook

rating-firms-speak-of-favorable-outlook

Rating agencies pointed to a positive outlook after New Democracy’s victory in Sunday’s election.

“Under the leadership of the center-right party New Democracy, the incoming government’s measures could boost Greece’s economic growth potential and alleviate outstanding socioeconomic challenges,” S&P Global said on Monday.

The ratings agency said that this view was already captured in its positive outlook on Greece, which it rates B+.

Canada-based agency DBRS added that “the Greek election results are promising for the country’s sovereign rating.”

“With the election of New Democracy, DBRS expects the reform effort in Greece to accelerate and the close cooperation with EU institutions to continue. However, maintaining fiscal discipline, while adopting more growth enhancing policies, is likely to be a challenge for the new government.

“DBRS views the implementation of structural reforms that bolster Greece’s economic recovery as a credit positive and will be closely monitoring the new government’s progress in this respect,” it stated.