Greece’s Credit Rating

Greece’s Credit Rating

The Big Three credit rating agencies in the world are Moody’s, Standard and Poor’s and Fitch Ratings. The main goal of these institutions is to assess the creditworthiness of individual countries, of their regions or companies. Credit ratings can show, for example, a country’s credibility, as well as of its region, or of a particular large-scale borrower. To put it simply, investors rely on these rating agencies and their assessments to make investment decisions.

The credit rating agencies usually evaluate a country’s credibility using a scale from A to C. In addition to credit rating an outlook is usually attached too. It can be stable, negative, positive, or unstable.

The Trading Economics portal has published the government debt credit rating for Greece as reported by the “Big Three”, as well as by the DBRS (Dominion Bond Rating Service), a credit rating agency with headquarters in Toronto and Ontario, Canada.

Agency Rating Outlook Date
Fitch BB Positive 24/01/2020
S&P BB- Positive 25/10/2019
Moody’s B1 Stable 01 /03/2019
DBRS BB (low) Positive 01/11/2019

US financial conglomerate Morgan Stanley notes, that Greece is now just two steps away from the “investment grade” category, according to at least one of the four rating agencies that the European Central Bank consults when assessing compliance with QE requirements.

Morgan Stanley also points out that the fact that Fitch agency has raised Greece’s credit rating to BB is another proof of Greece’s steady growth and recovery. In particular, the sustainability of public debt is gradually improving and the economic recovery seems to be gaining momentum. The American Bank believes that Greece will continue to implement the necessary reforms and conduct a competent fiscal policy, which will have a positive impact on growth, as well as on the assessment by other rating agencies. Finally, as regards the markets, the country’s possibility of returning to the previous levels of investments will be the main subject of consideration.

Those who want to invest in the Greek economy will have to wait until the second quarter of 2020 for the next “verdict” of companies, such as S & P and DBRS. More precisely,  their rating is scheduled for April 24. Moody’s rating for Greece is the lowest, and its next review will be on May 8, while Fitch, which currently gives the highest rating, will re-evaluate it at the end of July.