S&P upgrades Greek econ prospects to positive, leaves actual rating unchanged at BB+

Standard & Poor’s on Friday upgraded prospects for Greece’s credit rating to positive, up from a stable outlook, leaving the actual rating unchanged at BB+, one notch below investment grade.

The decision is considered as “balanced”, given that it comes a month away from general elections in the country, while the positive outlook points to a coming re-emerge by the thrice-bailed out country to investment grade territory after 13 years in “junk” status.

S&P is expected to delay any upgrade to investment grade until uncertainty in Greece’s political sphere is dissolved with the swearing-in of a new government, either of the one-party variety or a coalition.

The international rating agency upgraded Greece from “BB” to “BB+” exactly one year ago, with the “stable” outlook in place since then. Another six milestones are on the 2023 calendar for the Greek economy’s assessment by international ratings firms, with Fitch’s latest report scheduled for June 9, followed by Scope in August; DBRS in September; a second report by Moody’s in September, and again by S&P in October. Fitch will close out the year vis-à-vis Greece’s rating on Dec. 2.