The investment-grade rating was granted to Greece by the credit rating agency Moody’s, upgrading its creditworthiness to Baa3 with a stable outlook from Ba1 with a positive outlook.
Moody’s is the only one of the three major American rating agencies and the five agencies recognized by the European Central Bank that had not yet granted Greece an investment-grade rating.
However, it had upgraded Greece’s credit rating by two notches in September 2023, just one step below investment grade, and in September 2024, it changed the outlook from stable to positive, signaling an imminent upgrade.
K. Hatzidakis: The country’s return to European normality is confirmed
The Minister of National Economy and Finance, Kostis Hatzidakis, made the following statement:
“I am pleased that my last statement as Minister of National Economy and Finance concerns the awarding of an investment-grade rating to the Greek economy by Moody’s, one of the most significant credit rating agencies internationally. Today’s upgrade marks the closing of a major cycle for the Greek economy and confirms the country’s return to European normality.
It is the result of the systematic effort made over the last 5.5 years, which was not easy, amid international crises and geopolitical instability. And it is clearly a success not only of the government but of all Greeks. Now, following today’s rating by Moody’s, all rating agencies recognized by the European Central Bank classify the Greek economy as investment grade. At the same time, Moody’s upgrade also signals the beginning of a new cycle. Because the upward trajectory must continue so that our country can climb even higher. It is in our hands not only to definitively leave the crisis behind but also to continue the upward trend of recent years, with a plan, seriousness, and determination to improve the lives of Greeks and secure a positive future for our homeland.
Moody’s announcement regarding the results of the government’s economic policy is eloquent and requires no further commentary. Among other things, it highlights the rapid reduction of debt, the increase in revenues through tackling tax evasion, without increasing taxes but rather by reducing social security contributions, the overperformance of the budget, and the reduction of non-performing loans. Tangible proof of the Greek economy’s progress is also the impressive response of investors to the bond issuances carried out yesterday by the Public Debt Management Agency (PDMA).
Greece sought €3 billion from the markets and, despite international uncertainty, received bids exceeding €56.5 billion, the largest amount ever recorded for any syndicated issuance by our country. It is also significant that with yesterday’s issuances and those earlier this year, the country’s borrowing needs for 2025 have been largely covered. And a safety net is being formed for any potential turbulence that may arise in international markets in the coming months. Congratulations to the PDMA, congratulations to all contributors to this great national success.”
Papathanasis: The reforms and growth-oriented nature of the Mitsotakis government’s economic policy are recognized
The Deputy Minister of National Economy and Finance, Nikos Papathanasis, emphasized on the occasion of Moody’s announcement regarding the Greek economy:
“The upgrade of Greece’s credit rating by Moody’s constitutes yet another international confirmation of the systematic and effective work that has been underway since 2019, of the reform-oriented and growth-driven nature of the economic policy of the Kyriakos Mitsotakis governments. Greece, despite international multi-level upheavals, has turned a page. It has definitively left the debt crisis behind and is now moving with sustained growth rates significantly higher than the European average.
With domestic political stability secured and macroeconomic indicators equally stabilized, the government, utilizing every euro from the range of funding and investment tools at its disposal, is accelerating the improvement of the investment-friendly environment, strengthening exports and the competitiveness of the economy, incentivizing innovation, business growth, and expanding their access to bank lending. With a plan, prudence, and determination, far from populist experiments and ‘magic recipes,’ we aim for measurable results that will ensure the sustainable dynamism of the economy and social cohesion, with improved incomes for all.”
Translated from article in Ertnews
