Moody’s raises Greece’s sovereign credit rating by 2 notches; investment grade next up

Moody’s on Friday raised Greece’s sovereign-credit rating by two notches, just one level below investment grade on the firm’s ratings index.

Specifically, Greece’s rating was raised to Ba1 from Ba3, with stable outlook. Another upgrade will return the country to the “elite” category, where it was suffering three consecutive bailouts and repeated downgrades.

Several other major ratings firms, such as Rating and Investment Information Inc., Scope Ratings and DBRS Morningstar, have recently upgraded Greece to investment level, with Moody’s figuring as the strictest of the group, one which also includes S&P and Fitch. The latter will issue ratings reports on Greece’s credit-worthiness in the coming period.

“The two-notch upgrade reflects Moody’s view that the Greek economy, public finances, institutions, and the banking system are witnessing profound structural change that will support a continued material improvement in credit metrics and resilience to future potential shocks,” Moody’s announced.

In reference to the development, Greek Finance Minister Kostis Hatzidakis referred to a policy, by the government, that will combine “social sensitivity with financial responsibility.”

“Greece’s credit upgrade, even by two notches by Moody’s, is not just another reward for the government’s fiscal and overall economic policy. It’s primarily proof that the government must remain faithful to a sound fiscal policy. A policy which, despite difficulties, will remain committed to the goals that have been set and to the achievement of corresponding primary surpluses. We have achieved a great deal in the economy over the last four years. We are judged every day and there is no reason to let achieved progress go to waste… we will continue to combine social sensitivity with financial responsibility in a steady manner.”