ATHENS, Greece (AP) — In a noteworthy development, Greece’s credit rating has been upgraded to investment grade by a major international agency. This move is expected to strengthen investor confidence in the country, which had previously relied on bailouts.
Despite several previous upgrades, Greece had not been able to regain its investment grade status since the start of the financial crisis between 2009 and 2018, which pushed the nation to the edge of bankruptcy.
DBRS Morningstar, one of the ratings agencies considered by the European Central Bank, stated that its decision to upgrade Greece to BBB (low) from BB (high) reflects its belief that Athens will maintain fiscal responsibility and ensure a downward trend in the public debt ratio.
The European Central Bank also takes into account the ratings from Fitch, Standard & Poor’s, and Moody’s, all of which have Greece just below investment grade.
Finance Minister Kostis Hatzidakis expressed his appreciation for this significant development, stating that it will lead to improved borrowing terms, increased investment, and ultimately, economic growth and job creation.
During Greece’s financial crisis, the country had to rely on international bailouts after credit downgrades prevented it from accessing international bond markets. As a result, the government implemented severe austerity measures, including spending cuts, tax hikes, and economic reforms, which were met with widespread opposition. However, the economy eventually recovered.
