The move brings Greece’s rating to Ba1 with stable outlook, only one step away from the investment grade zone that the country lost 13 years ago. Other firms, such as Japan’s Rating and Investment Information Inc., Germany’s Scope Ratings and Canadian DBRS Morningstar, have recently put Greece to the elite status.
The decision follows the announcement of data for Greece’s growth in the second quarter that shows the expansion of economy by 1.3% from the previous three months, driven by consumption and investments. The country’s statistical authority also revised to the better the first-quarter figures. Earlier this month Greece had its worst floods in history caused by storm Daniel, leaving 15 people and thousands of animals dead, while it destroyed homes, bridges, infrastructures, businesses and factories as it affected some 72,000 hectares . Mitsotakis has asked EU’s support with Europe promising to back Greek economy with €2.25 billion .
“The stable outlook balances these positive trends against structural challenges, which could weigh on Greece’s credit profile more than Moody’s currently assumes,” Moody’s said, referring to a sizable current-account deficit, the still high government debt burden, and additional economic and fiscal challenges from ageing and climate change.