ATHENS, March 15 (Xinhua) -- Greek Prime Minister Kyriakos Mitsotakis on Saturday welcomed Moody's upgrade of Greece's credit rating to investment grade, marking the final step in restoring the country's status across all three major international rating agencies.
Moody's raised Greece's rating late on Friday from Ba1 to Baa3, citing a faster-than-expected improvement in public finances and greater resilience to future economic shocks.
"Moody's upgrade of Greece to Baa3 marks the final step in restoring our investment grade by all major rating agencies, highlighting Greece's significant progress," Mitsotakis wrote on social media. "We remain fully committed to reforms that attract investment, create jobs, and drive sustainable growth," he added.
In its statement, Moody's emphasized the government's improvement. "Public finances have improved more quickly than we had expected. Based on the government's policy stance, institutional improvements that are bearing fruit, and a stable political environment, we expect Greece to continue running substantial primary surpluses, which will steadily reduce its high debt burden," Moody's stated.
Moody's was the last of the three major credit rating agencies to grant Greece an investment-grade rating. S&P and Fitch upgraded Greece's sovereign credit rating in October and December 2023, respectively. These upgrades, the first since Greece's debt crisis over a decade ago, reflect growing confidence in the country's economic recovery and fiscal reforms, helping to attract more investment and lower borrowing costs.
According to Moody's, Greece's debt-to-GDP ratio has declined by nearly 50 percentage points since its peak in 2020. "We estimate that it stood at 156.1 percent of GDP at the end of 2024 and project that it will decline to 148.3 percent in 2025," Moody's added.
Moreover, the agency highlighted improvements in Greece's banking sector, which further reduces the risk of financial instability and enhances the country's credit outlook.
