Jan 29, 2023
Fitch Lifts Greece’s Credit Rating Amid Better Fiscal Forecasts
Bloomberg News
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(Bloomberg) -- Fitch Ratings raised Greece’s credit score as it expects improved fiscal and debt outcomes for the nation through 2024.
The company upgraded Greece by a notch to BB+, one level below investment grade, on par with Colombia and Morocco. Fitch expects the general government deficit to shrink to 1.8% of gross domestic product in 2024 from an estimated 3.8% in 2022, according to a statement issued on Friday.
“There is some uncertainty around fiscal policies after the upcoming legislative elections but the risks are mitigated by a broad commitment to and a recent track record of fiscal prudence,” Fitch analysts Federico Barriga Salazar and Greg Kiss said in the report.
Last year, Greece benefited from a “snowball effect” given decades-high nominal growth and a modest increase in average interest rate costs, leading to an estimated “record” narrowing of the general government debt/GDP ratio to 170%, they said, noting they expect that ratio to fall at a “more moderate pace over the medium term, driven largely by primary balance surpluses.”
S&P Global Ratings scores Greece as BB+, like Fitch, and Moody’s Investors Service rates it Ba3, three notches into junk. All three assign the nation a stable outlook.
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