DBRS Morningstar raised Greece’s credit rating on Friday to ΒB (high), up from BB and changed the trend to Stable from Positive.
According to the German ratings firm, the “upgrades reflect DBRS Morningstar’s view that Greece continues to progress economic reforms and remains fully committed to fiscal consolidation. The economy grew by 8.3% last year and is now very close to its pre-pandemic level. Fiscal overperformance and cash management strategy in 2021 led to liquid cash reserves remaining very high, currently around EUR 41 billion. Russia’s invasion of Ukraine looks set to shave off around one percentage point from this year’s GDP growth.
“The ECB last December signaled its support to Greek government bonds. Greek banks continue to make significant progress in reducing non-performing loans (NPLs) to single digits, even with some new asset quality deterioration. Improvements in DBRS Morningstar’s building blocks of “Economic Structure and Performance”, “Debt and Liquidity” and “Monetary Policy and Financial Stability” are the key factors for the upgrades.”
In an immediate reaction, Greek Finance Minister Christos Staikouras referred to an “extremely positive development” and recognition of the progress and prospects of the (Greek) economy.
Staikouras noted that even amid successive and simultaneous external crises (pandemic, Russian invasion of Ukraine, energy prices), Greece has taken another step forward and has now come within a notch of reaching the investment grade rating.
Fitch upgraded Greece’s credit rating to “BB” on Jan. 15, referring at the time to a strong growth dynamism by the Greek economy and a reduction in the fiscal deficit, both of which will support an accelerated decrease of the public debt.
Conversely, S&P last October declined to publish a report on the Greek economy, with the next review expected in roughly five months.
The entire press release is here
Latest News
Vardis Vardinogiannis: ‘On a Ship’s Bridge You Always Look Forward’
Ten milestones in the half century since the creation of Motor Oil Group, as described by Vardis Vardinogiannis, who passed away on Tuesday at the age of 91
DBRS Says Greek Banks ‘Shielded’ from ECB Rate Cuts
The agency explains that fund disbursements through the banking sector will help offset pressures anticipated on interest margins beginning in 2025, due to expected rate cuts by the European Central Bank (ECB).
Meta Cuts Facebook and Instagram Subscription Fees by 40%
The social media giant also revealed that it will continue to offer free access to Facebook and Instagram for EU users, provided they agree to see ads based on a limited set of user data.
Skyrocketing Use of Debit, Credit Cards
The total value of the transactions conducted with debit and credit cards in the country in the first half of 2024 rose 2% on the corresponding period of 2023
JP Morgan Revised Greece Outlook to ‘Overweight’
The investment bank notes that Greece is showing the strongest GDP growth in the Eurozone. Additionally, efforts to clear up bank balance sheets are anticipated to yield increased capital returns.
Vardis I. Vardinogiannis, Greek Tycoon and Shipping Magnate, Dies at 91
In 1990, Vardinogiannis was targeted in an attack which involved three rockets fired at his vehicle by the terrorist organization 17 November.
Kudos for Greek Sheep’s Milk Cheeses
Graviera is the Greek version of the Swiss gruyère, and is generally considered the second most popular cheese made in the country after feta
EIB Survey: Greeks Rank Climate Change as Top Concern After Cost of Living
Specifically, 98% of the Greeks surveyed stated that the country must to adapt to climate change, with 60% saying that priority should be given to these adjustment measures
Trump Tells Putin not to Escalate Ukraine War during Phone Convo
Meanwhile, President Joe Biden, is preparing to lobby Trump against abandoning U.S. support for Kyiv
Former Thessaloniki Mayor Yiannis Boutaris Dies at 82
Boutaris entered politics in 2010, serving as the 60th mayor of Thessaloniki for two consecutive terms until 2019, becoming a transformative figure with his progressive policies.