S&P: Greece ‘BB+/B’ Ratings Affirmed; Outlook Stable

S&P Global Ratings affirmed its long- and short-term sovereign credit ratings on Greece at ‘BB+/B’. The outlook is stable.

Following a strong 2022, S&P expects economic growth in Greece to decelerate in 2023 to below 2%, with potential further energy disruptions in Europe clouding the outlook.

Greece’s 12-month inflation appears likely to ease from its multi-decade high in September, pushing wages up only slightly (0.9% year on year in second-quarter 2022), and softening demand.

Despite the government’s budgetary measures to cushion the economic impact of energy and food price shocks, the 2022 budget deficit should narrow to about 4% of GDP this year, declining further in 2023 and putting government debt as a percentage of GDP on a downward path.

S&P therefore affirmed the ratings on Greece at ‘BB+/B’. The outlook is stable.

The stable outlook reflects its expectation that Greece’s fiscal buffers and proven policy effectiveness will enable the country to absorb the indirect impacts on its economy and public finances from the Russia-Ukraine war.