Standard & Poor’s kept Greece’s credit rating unchanged at the “BBB” investment grade, with a stable outlook.

As the house notes, as of 2023, Greece has recorded extremely high primary fiscal surpluses, with an average of 3.4% of GDP. He even estimates that the country will record a surplus for the second year this year, making it one of the few developed countries that will repay the net public debt in absolute terms, for the second consecutive year.

It also adds that although external imbalances are elevated, Greece’s participation in the euro area and its compliance with EU fiscal covenants offer protection against the risk of balance of payments shocks. And the country’s economic prospects are stable, boosted by investment projects and strong demand in the tourism sector.

Therefore, the house affirms its long-term and short-term credit ratings for Greece at ‘BBB’ and ‘A-2’ respectively, with a stable outlook, which balance Greece’s strong economic and fiscal performance against high external and public debt stocks.

However, S&P warns that it could downgrade the country’s credit rating if Greece’s fiscal performance shows a significant deterioration.

On the other hand, it could upgrade the creditworthiness of the Greek economy if external imbalances improve substantially and sustainably. This could happen, he notes, if there is a reduction in the economy’s dependence on imports. At the same time, a significant reduction in the country’s debt, a large part of which is borne by the public, could also lead to an upgrade of the rating.

It is recalled that on September 19, the American agency Moody’s did not update its assessment of the Greek economy, keeping Greece’s credit rating unchanged at “Baa3” with a stable outlook.

The “dance” of ratings will continue on November 7 with the verdict of Scope, while the last rating for this year will be given by Fitch on November 14.