Greece Wins New Credit Rating Boost that Stops Short of Restoring Greek Bonds to Investment Grade

September 16, 2023

ATHENS — Greece’s economy received a substantial vote of confidence late Friday from Moody’s ratings agency, which upgraded the Greek credit rating by two notches but stopped just short of returning the formerly struggling country to formal financial respectability.

Moody’s said it was upgrading Greece’s rating from Ba3 to Ba1, with a stable outlook. But that still leaves the country’s bonds one notch shy of investment grade, which would clear the way for purchases by many major global investors.

Finance Minister Kostis Hatzidakis said the upgrade was “mainly a proof that the government must remain faithful to a sober fiscal policy,” to be combined with “sensitivity” on social issues.

The last time Moody’s upgraded Greece’s rating was in November 2020. It had downgraded the country’s bonds to non-investment, or junk, status in 2010, at the height of the financial crisis that forced three international bailouts in return for severe spending cuts, tax hikes and economic reforms.

Moody’s announcement Friday came a week after DBRS Morningstar upgraded Greece’s rating to investment grade. DBRS, Moody’s, Standard and Poor’s and Fitch are the four ratings agencies taken into account by the European Central Bank — with the latter two expected to recalibrate Greece’s sub-investment grade rating by the end of the year.

Moody’s said the center-right government’s parliamentary majority following June elections “provides a high degree of political and policy certainty for the coming four years, fostering the ongoing implementation of past reforms and the design of further structural reforms.”

It said it expects Greece’s GDP to grow an average 2.2% annually in 2023-27 driven by investment and consumption, a “very significant improvement” compared to average growth of 0.8% in the five years before the pandemic.

It said Greece’s debt will likely fall to close to 150% of GDP as early as 2024 due to stronger GDP growth than projected earlier.

Moody’s said it sees the Greek government’s commitment to reform implementation and fiscally prudent policies as “credible and strong,” adding that there is also “broad consensus in society for these policies.”

But Moody’s warned that Greece’s economy is susceptible to external shocks, given the size and importance of key sectors like tourism and shipping.


ATHENS - You wouldn’t imagine it from the busy streets of Athens and Greek cities buzzing with activity, people out dining, having coffee and socializing but large numbers of elderly in the country spend their days alone in remote areas.

Top Stories


A pregnant woman was driving in the HOV lane near Dallas.

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.


Deck the White House Halls: Jill Biden Wants Holiday Visitors to Feel Like Kids Again (Vid & Pics)

WASHINGTON (AP) — Step inside the White House during the holidays by walking beneath the branches of a Christmas tree.

LOS ANGELES – The Los Angeles Greek Film Festival (LAGFF) hosts an in-person screening of Greece’s Oscar entries which compete for nominations in December - Asimina Proedrou’s top Iris Award-winner ‘Behind the Haystacks’ (Πίσω από τις Θημωνιές) and Thanasis Neofotistos’ multiple-award-winning short film ‘Air Hostess – 737’ - on Sunday, December 10, 5:30 PM, at the Gianopulos Family Theater at St.

LOS ANGELES – The Saint Sophia Greek Orthodox Cathedral community is calling for cookies for the reception following the 24th Annual Christmas Concert on Sunday, December 3.

WASHINGTON (AP) — Step inside the White House during the holidays by walking beneath the branches of a Christmas tree.

UTTARKASHI, India (AP) — All 41 construction workers who were trapped in a collapsed mountain tunnel in northern India for more than two weeks were pulled out on Tuesday, bringing an end to a drawn-out rescue mission that had grabbed the country's attention for days.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.