Greece Welcomes R&I Rating Upgrade to Investment Grade

Japanese ratings agency R&I upgraded on Monday the Greek economy rating to “investment grade BBB-” with a “stable” outlook also revising upward the Foreign and Domestic Currency Issuer Ratings to “BBB”.

R&I’s previous rating of Greece stood at BB+ with a stable outlook. The current rating places the Greek economy at a level it held 13 years ago.

“The Greek economy remains on a solid track despite the uncertain economic environment in Europe. The primary balance has turned to surplus and the government debt ratio has fallen below the pre-pandemic levels,” said the agency.

Source: R&I.

Among others, R&I analysts attribute to revised rating to the electoral win of the Mitsotakis government in June which “ensures the continuation of policies aiming to revive the Greek economy and fiscal restructuring and to expectations for higher growth rates based on investments and reforms, along with a steady improvement of public debt”.

The report goes on to add that the Greek economy grew more than the Eurozone average in 2022 and is projected to continue the strong growth in 2023. Greek government debt meanwhile, dropped to 171.3 percent of GDP in 2022, from more than 200 percent in 2020, with analysts expecting a 162.6 percent drop in public debt this year.

All of the above confirm the stability of country’s financial sector, the agency said.

Photo source: European Parliament.

In response to the news, the Greek Finance Ministry attributed the upgrade to the upward dynamic of the Greek economy, political stability and to the positive prospects for the country that are opening up after the elections in June.

The ministry adds that this development “paves the way for investment funds from Japan – and the Asian market in general – towards the Greek economy”.

“Despite the fact that R&I is not among the rating agencies recognized by the European Central Bank, today’s upgrade heralds upgrades expected in the next period from other rating agencies recognized by the ECB. A fact that will mean lower financing costs, greater investments in the country, growth and jobs,” said the ministry.