Greece rating is increased to “BBB” for “unshakable fiscal discipline”

For “unshakable fiscal discipline”, the S&P agency increased the rating of Greece to “BBB”.

For the first time, Standard & Poor's restored Greece's creditworthiness to the investment level in October 2023 and revised the country's forecast for a positive in April 2024. Last Friday it increased the sovereign credit rating of Greece from BBB-to BBB with a stable forecast.

This is the third of the five credit agencies recognized by the European Central Bank after Scope and DBRS, which increased the Greece credit rating to the investment level, Notes GreekrePorter.

S&P notes the efforts of Greece to improve compliance with tax legislation in combination with sustainable economic growthwhich allowed the country to continue to overfulfill budget goals. The report says:

“Despite the difficult external conditions, in most scenarios, Greece will see a further stable reduction in pure debt in relation to GDP. In our central scenario, we expect this ratio will decrease by an average of 6 percentage points a year over the next four years. ”

The monetary position of the Agency for the management of state debt (PDMA) provides Greece with an additional buffer, which, according to estimates, is 15% of GDP and covers almost three years of upcoming repayment of the debt. The agency said:

“We could increase the ratings if the external imbalances of Greece have improved significantly. For example, this could have happened if we saw a decrease in the dependence of the economy on imports. We could also increase the rating of Greece if we saw a significant reduction in external debt, most of which is state -owned. ”

However, it added that It can lower the ratings if the budgetary indicators of Greece “significantly deteriorate”.

S&P rating agency reported that Greece significantly surpassed its fiscal goals for 2024its fiscal trajectory is securely fixed, its economy is expected to continue to ahead of the Eurozone countries, and the ratio of pure public debt to GDP demonstrates a clear and continuing improvement.

Relatively New Tariffs of the President of the United States Donald Trump S&P said that The risk for Greece is considered a controlled:

“Greece has only a slight direct effect on the United States; Direct export of goods is about 0.8% of GDP. At the same time, Germany and Italy, the most important trading partners of Greece, are much more affected by US tariffs. The production sector of Greece, the importance of which has been growing in recent years, exports a significant amount of intermediate goods to neighboring countries, including Germany and Italy. ”

The Greece shipping sector will clearly suffer from the reduction of world trade, although the re -export strategies and routes can be used to mitigate the overall exposure:

“In any case, given his rather low contribution to state revenues, the shock in the shipping sector is unlikely to significantly affect public finances.”

The agency noted that it increases the rating of Greece due to its “unshakable fiscal discipline” And it stated that efforts to improve compliance with tax legislation in combination with sustainable economic growth will allow Greece and further overfulfill their fiscal goals.

Vice Prime Minister and ex-Minister of Finance Kostis Hatsidakis welcomed the increase in the rating, saying:

“It is especially important for me personally that S&P emphasized the fiscal examination, which determines the government’s policy, as well as the recognition of systematic efforts of recent years to limit tax evasion. A further increase in the rating of the Greek economy to the investment level by the S&P agency, especially during the period of global instability and uncertainty, “is another evidence of the trust of the international investment community to the economic policy of the government.”

Minister of National Economics and Finance Kiriacos Pierrakakis noted:

“Greece is dynamically returning to actions, claiming another step in the investment level. The forecast of a credit rating agency for the Greek economy justifies the choice of the government and the trust of citizens who share our faith in the fact that fiscal stability is the only safe way out of the long -term economic crisis. ”

Deputy Minister of Finance Nikos Papatanasis noted that international recognition of a measurable return on economic policy will accelerate the reforms that society and Greece need, which will lead to an increase in investment and the creation of jobs.

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