(MENAFN) In a significant development, Fitch Rating Agency announced on Friday that it has raised Greece's long-term sovereign debt rating from "BB+" to "BB-" with a "stable" outlook. This upgrade positions Greece within the coveted "investment" category. Notably, Standard & Poor's had already removed Greece from the list of speculative investments in October, marking a pivotal moment since the debt crisis of 2010.
Fitch's positive assessment is underpinned by the expectation that Greece's ratio of public debt to GDP will continue to "decline sharply." The agency attributes this trend to both economic growth and what it terms "fiscal prudence." Moreover, Fitch expressed confidence in the relatively low political risks associated with the Mediterranean nation. The agency commended Greece for its commendable efforts in areas such as budget control and tax reforms.
Greek Finance Minister Kostin Hatzidakis, speaking on the "X" platform, hailed Fitch's decision as an "important national success." According to him, the upgraded rating opens avenues for larger investment inflows, improved financing conditions for the economy, and enhanced prospects for growth and job opportunities. Hatzidakis specifically appreciated Fitch's recognition of Greece's remarkable achievement in reducing public debt by 65 percentage points of GDP – a notable decline from 205 percent during the pandemic to 160.8 percent this year, with a projected further decrease to 141.2 percent by 2027.
It is worth mentioning that in September, Canada-based DBRS Morningstar had already elevated Greece's credit rating to investment grade, marking another positive turn in the country's economic trajectory.
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