22 Mai Moody’s upgrades Greece’s bonds 2 notches on better outlook
Credit ratings agency Moody’s raised Greece’s government bond ratings by two notches Friday, citing improved public finances and a better economic outlook. Moody’s action lifts Greece’s ratings from « C, » the lowest possible level, to « Caa3, » which is still in sub-prime status. The outlook for the rating is « stable. »
The higher rating was warranted, according to Moody’s, after Greece took steps to improve its fiscal condition, reducing its headline deficit 74 percent since 2009 and targeting a primary surplus of close to 1.5 percent of GDP in 2014. Moody’s also said there was evidence the Greek economy was « bottoming out after nearly six years of recession » and that the medium-term prospects have also improved. Finally, Moody’s cited a much-reduced interest burden following a restructuring of the country’s debt.
On Friday, Greek Finance Minister Yannis Stournaras told reporters that Greece hoped to reach an agreement on a deal to unlock a $1.4 billion in financial bailout aid by the end of this year. The negotiations are with the so-called creditor troika — the European Union, International Monetary Fund and European Central Bank. Athens disagrees with creditors on the level of a forecasted financing gap for 2014 and on the measures needed to cover it.
Source: News Daily, 29/11/13