Moody’s has raised its outlook on Greece’s credit rating to positive from stable, despite maintaining the rating at Ba3, three notches below the investment grade it has maintained since 2020. while noting that public debt will reach 162% of GDP in 2023 and fall below 150% of GDP by 2026.

A key driver behind the outlook change from stable to positive is the prospect of a period of higher growth than the past decade, partly due to improved governance and the effectiveness of financial and banking sector reforms, the ratings agency said. bear fruit. Combined with a stable and prudent fiscal policy, GDP growth will lead to a significant reduction in Greece’s debt burden in the coming years.

The affirmation of Greece’s Ba3 rating balances the improvements seen in many areas of the country’s creditworthiness and the significant problems that remain. According to the rating agency, further reforms in areas such as the business environment, justice, education and the labor market will contribute to a higher rating. In addition, the government’s debt burden remains very high, and in order to reduce it further and get Greece back to financing from the markets, it is necessary to maintain high primary surpluses for a very long time.

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