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Greece: A Durable Investment Grade is Important

The circumstances that lead to investment grade will bring further confidence, accelerate foreign investment and improve the operating environment for Greek banks. Financial conditions could be relatively improved due to better perceptions of risk, albeit in the context of still tightening global financial conditions. Moreover, risks to the global economy remain, related to the fact that the full impact of rapid monetary tightening is yet to come. We will review the rating of the Hellenic Republic, rated BB (high), Stable, on 8th September 2023. Meanwhile, we will continue to assess the implementation of structural reforms; improvements in economic prospects; commitment to fiscal consolidation that keeps the public debt ratio on a downward trajectory; and the overall stability of the financial-sector, as they all lead Greece to the threshold of an investment grade rating. The main question that has thus far kept Greece from a return to investment grade is the durability of this progress.

• The Hellenic Republic is on the threshold of an investment grade rating.
• We continue to assess progress with and the durability of structural reforms and investments, as well as fiscal improvements.
• The global environment remains challenging, emphasising the need to maintain policy discipline.

“We continue to assess the durability of progress made thus far and the resilience of the Greek economy,” notes Nichola James, Co-Head of Sovereign Ratings. “A crisis such as COVID-19 shows that a diversified productive economy with fiscal space, can shield an economy from external shocks and this was also evident when the need arose for energy support measures.”