Yannis Stournaras, the Governor of the Bank of Greece, expressed optimism about Greece regaining its investment-grade status in the near future following the formation of a new government. In an interview in Sintra, Portugal, Stournaras highlighted the stability of the recently elected government and its strong parliamentary majority. He stated that the government is committed to implementing reforms, and he expects that after the government presents its plans in parliament, achieving investment-grade status will be a matter of weeks, if not days.
Greece’s credit rating was downgraded to junk status in 2010 when it received its first bailout, and it further faced a selective default classification after a debt restructuring in 2012. However, the country is now aiming to restore investor confidence. Fitch Ratings, S&P Global Ratings, DBRS Morningstar, and Scope Ratings currently have Greek debt just one notch below investment grade. Moody’s, on the other hand, has it three steps away but expressed a positive outlook following the re-election of Prime Minister Kyriakos Mitsotakis in the recent vote, considering it a credit-positive event.
The potential return to investment-grade status is seen as a significant milestone for Greece, as it would improve the country’s access to international capital markets and reduce borrowing costs. It reflects the government’s commitment to implementing reforms and maintaining economic stability. Achieving this rating upgrade would further validate Greece’s efforts to address its fiscal challenges and attract more foreign investment, supporting the country’s ongoing economic recovery and growth prospects.
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