DBRS Morningstar upgrades Greece to BBB (low), stable trend

Η DBRS Ratings GmbH (DBRS Morningstar) on Friday upgraded Greece’s long-term foreign and local currency – issuer ratings from BB (high) to BBB (low).

Additionally, the ratings firm upgraded Greece’s short-term foreign and local currency – Issuer Ratings from R-3 to R-2 (middle). The trends on all ratings remain stable, the firm added, in a press release.

The upgrade reflects DBRS Morningstar’s view that, in line with Greece’s impressive track record, the Greek authorities will remain committed to fiscal responsibility, ensuring that the public debt ratio stays on a downward trend. Energy-related support measures did not prevent the primary fiscal balance from reaching a surplus of 0.1% of GDP in 2022. A surplus of 1.1% is expected this year and of 2.1% in 2024. Since its peak in 2020 the public debt ratio has declined by 35 percentage points (pp.), of which 23 pp. last year, benefiting from fiscal repair and strong nominal GDP growth. The significant improvement in fiscal and debt outcomes is bolstered by Greece’s government’s strong commitment to the implementation of a prudent fiscal plan that drives the rating upgrade.