The stability of Greece’s “B minus” level of public debt rating has been upgraded to Standard & Poor’s on Friday, suggesting a positive rating.
The international credit rating was the reason for the announcement on Friday evening in London that, in the light of the economic recovery that began, as well as the further fiscal reforms and the further relaxation of the debt situation, the Greek debt to the domestic GDP (GDP) And the cost burden of debt service.
Standard & Poor’s said: The positive outlook now provided for at least a third chance for the next twelve months is likely to improve Greek sovereign ratings.
At the end of last month, another major rating agency, Moody’s Investors Service, has upgraded Greece. The company justified the decision as a result of the second revision of the adjustment program and the signs of improving fiscal position and economic stabilization.
Moody’s has upgraded the long-term Greek debt rating from “Caa3” to a “Caa2” with a degree and has left a positive view of the potential for further upgrading at the new rating.
However, the Greek debt rating is still deep in the speculative band for both companies, far from the basic level of the investment grade category.
Standard & Poor’s highlighted in its rationale for improving the Greek grid view Friday: it is expected that Greece will achieve a primary surplus on average 3 per cent of GDP per annum in the general government balance over the period 2017-2020, an annual GDP growth rate of 2.8 per cent .
On the basis of these, Standard & Poor’s analysts report that the Greek debt ratio for the domestic total product will fall to 158 percent by 2020 from 179 percent last year.
Other large London houses are judging the prospects of the Greek stabilization program far less satisfyingly.
Source: MTI / Picture: napi.hu /