ATHENS: Greece’s long-term sovreign credit rating by one notch to B from leaving it below investment grade but with a positive outlook.
The rating agency, wihch projects real GDP growth of 2 per cent for the Greek economy this year, said that the nation’s growth and fiscal outlooks have improved, as has its labour market, noting that the improvements have come at a time of policy uncertainty.
The upgrade reflects Greece’s steadily improving general government finances and its gradually recovering economic prospects,” analysts at S&P said. “The government ran primary fiscal surpluses in 2016 and 2017 while the economy exited a multiyear recession last year.
The positive outlook on Greece reflects further upside rating potential from the policy and financing environment over the next year”
However, S&P noted that after Japan, Greece has the second largest debt-to-GDP ratio. And because of a loss of retail funding, the country’s financial sector is still dependent on the European Central Bank for financing.