Great news for Greece! Moody’s has upgraded the country’s long-term sovereign credit rating from Ba1 to Baa3, officially granting Greece investment-grade status. A big win! Even better, the agency has revised the rating outlook from positive to stable.
Moody’s analysts expect Greece to maintain a budget surplus and continue reducing its high debt burden. Institutional reforms and a stable political climate have played a key role in this progress.
Greece’s public finances are also looking strong. For several years, they have consistently outperformed Moody’s baseline expectations, reinforcing confidence that the country’s debt will keep declining.
Currently, Greece’s debt-to-GDP ratio has dropped by 50 percentage points from its peak in 2020 and is 27 percentage points lower than in the pre-pandemic period.
In addition to the sovereign rating upgrade, Moody’s has also raised Greece’s foreign and local currency ceiling from A1 to Aa3—another boost for the country’s financial standing!
