ZCZC
BCN-01
GREECE-ECONOMY-RATING-DEBT
Fitch raises Greece’s debt rating, citing stability, growth
WASHINGTON, Feb 17, 2018 (BSS/AFP) – The Fitch ratings agency on Friday
upgraded Greece’s sovereign debt grade, citing budget surpluses, greater
political stability and the growing economy.
The agency raised the debt rating one notch to ‘B’ from ‘B-,’ leaving the
country in the “highly speculative” category but with a positive outlook.
The decision followed a similar move last month by S&P Global Ratings,
which said the long-suffering economy’s improving fiscal situation was
coinciding with growing employment.
Long the “sick man of Europe,” Greece is expected to face smoother
sailing, with Eurozone finance ministers expected to sign off on the review
of its performance under as its financial aid program, which runs through
August 2018.
The eurozone also is expected to provide “substantial debt relief” this
year, Fitch said.
“The concessional nature of Greece’s public debt implies that debt
servicing costs are low despite the high stock of public debt,” Fitch said in
announcing its decision.
The agency noted that Greece saw three straight quarters of GDP growth for
the first time in 11 years, causing per capita incomes to rise as well, while
political risks have receded.
Between 2015 and 2017, the government of Prime Minister Alexis Tsipras
adopted painful measures under the bailout program and “we think it would be
politically difficult for the same government to backtrack” once the program
ends, Fitch said.
Greece has also recorded rising budget surpluses and while the banking
sector remains weak, banks have committed to plans to reduce their non-
performing exposures by the end of next year, Fitch said.
BSS/AFP/HR/0925