The credit rating agency DBRS upgraded the Greek debt to the level of BB (high) from BB and changed its perspective (trend) to stable from positive.
In particular, the house states:
“The upgrade reflects the house’s view that Greece continues to make progress on economic reforms and remains fully committed to fiscal adjustment.
The Greek economy grew 8.3% last year and is now very close to its pre-pandemic levels. The fiscal outperformance and cash management strategy in 2021 kept the cash reserve very high, today at around 41 billion euros.
The Russian invasion of Ukraine is expected to reduce this year’s GDP growth by one percentage point.
The ECB in December signaled its support for Greek bonds. “Greek banks continue to make significant progress in reducing non-performing loans (NPLs) to single-digit levels, despite some new deterioration in asset quality.”
“The stable outlook reflects the DBRS view that the longer-term outlook for the Greek economy appears to be significantly boosted by governance, investment, exports and reforms, supporting public debt sustainability.
“The DBRS considers that several credit uncertainties remain – the macroeconomic consequences of the situation in Ukraine, the quality of its financial assets and the extent to which the ECB will provide support to Greek bonds in a market turmoil.”
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