DBRS upgrades Greece’s credit rating to investment grade; FinMin welcomes upgrade

The Canadian credit rating agency DBRS Rating gave Greece a much-sought-after investment grade rating by upgrading its long-term foreign and local currency issuer ratings from BB (high) to BBB (low) with a stable outlook, on Friday night (Athens time).

DBRS (DBRS Morningstar) also upgraded Greece’s short-term foreign and local currency issuer ratings from R-3 to R-2 (middle), with a stable outlook. It is the first of four rating agencies recognized by the European Central Bank to raise Greece’s rating to investment grade after 13 years.

In its announcement, DBRS said the upgrade was in line with Greece’s impressive track record, noting that the Greek authorities will remain committed to fiscal responsibility, ensuring that the public debt ratio stays on a downward trend.

Energy-related support measures did not prevent the primary fiscal balance from reaching a surplus of 0.1% of GDP in 2022. A surplus of 1.1% is expected this year and of 2.1% in 2024. Since its peak in 2020 the public debt ratio has declined by 35 percentage points (pp), of which 23 pp occurred last year, benefiting from fiscal repair and strong nominal GDP growth. The significant improvement in fiscal and debt outcomes is bolstered by Greece’s government’s strong commitment to the implementation of a prudent fiscal plan that drives the rating upgrade, it said.

FinMin Hatzidakis

National Economy & Finance Minister Kostis Hatzidakis welcomed the rating, stating: “At a very difficult moment for our country, at a time when the thoughts of all of us are with the victims of the unprecedented natural catastrophes and their families, the recovery of investment grade for Greece following many years is a very important development for our country.”

Hatzidakis said that the rise to investment grade rating “was neither easy, nor of a technical nature. It called first for a systematic effort carried out the last four years at economic level, which has been rewarded up to now with a series of credit rating upgrades. It also means further improvements in borrowing terms, more investments in Greece, development, and new job openings.” The government raised investments, export rates, reduced unemployment and the debt in terms of GDP, provided political stability, and followed a responsible economic policy that will push Greece further into development, he added.