S&P raises Greece’s rating

Ratings agency S&P Global on Friday raised Greece’s local and foreign currency long-term issuer ratings to ‘BBB-/A-3’, with a stable outlook, citing stronger budgetary position.

S&P said it expects budget surplus target to help in paring the country’s government debt, and added that it is cautious about political pressures hindering Greece’s ability to sustain large primary budget surpluses.

Euro zone’s most indebted nation raised about 10 billion euros from state asset sales since 2011, and hopes to raise more than 5 billion euros in 2024.

Greece expects economic output to rise 3% in 2024, banking on strong tourism revenue projections, investment inflows and demand. The ratings agency expects “additional structural economic and budgetary reforms, coupled with large EU funds, will support robust economic growth in 2023-2026.”

In September, Moody’s upgraded Greece’s rating to ‘Ba1’ and changed its outlook to stable, while DBRS Morningstar raised Greece’s rating to investment grade BBB (low), relying on the country’s upbeat growth and the significant improvement in its fiscal plan and debt outcome.