AFP, Washington :
Credit rating agency Fitch on Friday upgraded Greece’s debt by a notch, citing what it called an improving outlook and amid expectations the country’s debt sustainability will steadily improve.
A month after Athens returned to credit markets with a bond issue for the first time in three years, Fitch boosted the debt rating to B- from CCC, with a positive outlook, which indicates the possibility of further upgrades.
“Fitch believes that general government debt sustainability will steadily improve, underpinned by ongoing compliance with the terms of the European Stability Mechanism (ESM) programme,” the agency said.
It also cited “reduced political risk, sustained GDP growth and additional fiscal measures legislated to take effect through 2020.”
“The successful completion of the second review of Greece’s ESM programme reduces risks that the economic recovery will be undermined by a hit to confidence or by the government building up arrears with the private sector.”
The upgrade is good news for the crisis-beset country that came close to default.
Early last month, eurozone finance ministers approved the latest 8.5 billion euro ($9.9 billion) disbursement of the bailout, just in time for Athens to meet major debt repayments.
Credit rating agency Fitch on Friday upgraded Greece’s debt by a notch, citing what it called an improving outlook and amid expectations the country’s debt sustainability will steadily improve.
A month after Athens returned to credit markets with a bond issue for the first time in three years, Fitch boosted the debt rating to B- from CCC, with a positive outlook, which indicates the possibility of further upgrades.
“Fitch believes that general government debt sustainability will steadily improve, underpinned by ongoing compliance with the terms of the European Stability Mechanism (ESM) programme,” the agency said.
It also cited “reduced political risk, sustained GDP growth and additional fiscal measures legislated to take effect through 2020.”
“The successful completion of the second review of Greece’s ESM programme reduces risks that the economic recovery will be undermined by a hit to confidence or by the government building up arrears with the private sector.”
The upgrade is good news for the crisis-beset country that came close to default.
Early last month, eurozone finance ministers approved the latest 8.5 billion euro ($9.9 billion) disbursement of the bailout, just in time for Athens to meet major debt repayments.
