Published by Global Banking & Finance Review®
Posted on March 15, 2025
2 min readLast updated: January 24, 2026
Moody's upgraded Greece to investment grade due to fiscal recovery and stability. Greek banks are stabilizing, and debt levels are decreasing.
(Reuters) - Global ratings agency Moody's upgraded Greece's rating to "Baa3" from "Ba1" on Friday, citing quicker-than-expected improvement in public finances and the country's greater resilience to potential future shocks.
"Based on the government's policy stance, institutional improvements that are bearing fruit, and a stable political environment, we expect Greece to continue to run substantial primary surpluses, which will steadily decrease its high debt burden," Moody's said in a statement.
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.
Greek banks are steadying and returning to profit after being nationalized following the 2009 financial meltdown caused by the country's debt crisis, which put them in a vulnerable position, requiring several capital injections from the government.
Last week, DBRS upgraded Greece's credit rating to "BBB" from "BBB low", two notches above the investment grade, citing a healthier banking sector and the continued reduction in the country's general government debt ratio.
The agency also revised Greece's outlook to "stable" from "positive", reflecting a balance between persistent credit challenges that are slow to improve and the country's institutional stability, which supports positive prospects.
(Reporting by Sruthi Narasimha Chari, Aatrayee Chatterjee in Bengaluru and Lefteris Papadimas; Editing by Alan Barona)
Moody's upgraded Greece's rating to 'Baa3' from 'Ba1', citing a quicker-than-expected improvement in public finances.
The upgrade is based on the government's policy stance, institutional improvements, and a stable political environment.
Since 2020, Greece's debt has shrunk by more than 40 percentage points, reaching 154% of its GDP in 2024, with projections for further reduction.
Moody's revised Greece's outlook to 'stable' from 'positive', reflecting a balance between credit challenges and institutional stability.
Greek banks are stabilizing and returning to profit after being nationalized following the 2009 financial crisis, indicating a healthier banking sector.
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