Finance
DBRS upgrades Greece on debt reduction
Published by Global Banking & Finance Review®
Posted on March 8, 2025
2 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 8, 2025
2 min readLast updated: January 25, 2026
DBRS Morningstar upgrades Greece's credit rating due to debt reduction and banking sector improvements, projecting further economic growth.
ATHENS (Reuters) - DBRS Morningstar upgraded Greece's credit rating to 'BBB' from 'BBB low' citing a healthier banking sector and the continued reduction in the country's general government debt ratio.
DBRS was one of the first rating agencies that upgraded Greece to investment grade in 2023. It also changed the outlook to stable from positive.
"The upgrade reflects Morningstar DBRS' view that legacy risks in the banking system have receded along with a continuation in over performance in fiscal targets," DBRS said in a press release.
Since 2020, the nation's debt, the highest in the euro zone, has shrunk by more than 40 percentage points, reaching 154% of its gross domestic product in 2024, and is projected to drop further by the end of this year.
Greece expects economic output to rise 2.3% in 2025, more than double the eurozone average. It also projects a primary budget surplus of 2.4% of GDP on higher investment and strong tourism revenue.
"This will likely facilitate a further significant reduction in the public debt-to-GDP ratio, which is projected to fall to below 140% by 2027," DBRS added.
Greece has seen a series of rating upgrades since autumn 2023, among them S&P Global Ratings Fitch, after 13 years in the junk category. Moody's is the only ratings agency that continues to place Greece one notch below the investment grade threshold.
Greek banks are steadying and returning to profit after they were nationalized following a financial meltdown in late 2009 due to the country's debt crisis, and needed several capital injections from the government.
They received European Central Bank approval last year to resume dividend payments for the first time in 16 years after they cut bad loan ratios, eliminated state ownership, and returned to profit.
(Reporting by Lefteris Papadimas; Editing by Chizu Nomiyama)
DBRS upgraded Greece's credit rating to 'BBB' from 'BBB low'.
The upgrade reflects a healthier banking sector and a continued reduction in the country's general government debt.
Greece expects economic output to rise by 2.3% in 2025, which is more than double the eurozone average.
Since 2020, Greece's debt has shrunk by more than 40 percentage points, reaching 154% of its GDP in 2024.
The public debt-to-GDP ratio is projected to fall below 140% by 2027.
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