Moody’s Ratings lifted Greece’s rating status to investment grade Friday, putting an official end to the country’s junk status era that started back in 2010.
The ratings firm raised Greece’s long-term sovereign rating to Baa3 to Ba1 with the outlook changed to stable from positive, according to a statement.
“The upgrade reflects our view that Greece’s sovereign credit profile now has greater resilience to potential future shocks. The public finances have improved more quickly than we had expected,” Moody’s said.
The move is largely a symbolic one, as Greek bonds have been trading at investment grade levels for the past two years.
Moody’s is the last ratings firm to include the country in the elite club. Fitch Ratings and S&P rate Greece just above junk, while Scope Ratings and Morningstar DBRS recently upgraded it further into investment grade.
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The country is overperforming most of its European peers with output advancing by 2.3% in 2024 compared with 2023.
Prime Minister Kyriakos Mitsotakis has pledged to keep producing high primary surpluses — that exclude interest payments — and will continue to repay ahead of schedule bailout loans.
“Based on the government’s policy stance, institutional improvements that are bearing fruit, and a stable political environment, we expect Greece to continue to run substantial primary surpluses which will steadily decrease its high debt burden,” Moody’s said.
Chart: Bloomberg
