Greece Upgrades Credit Rating After 15 Years of 'Junk Bond' Status
Moody's raises Greece's long-term rating from 'Ba1' to 'Baa3', signaling improved economic resilience.
On March 17, 2025, Moody's Investors Service announced a significant upgrade of Greece's long-term credit rating from 'Ba1' to 'Baa3', effectively ending a 15-year period during which the country was classified as a 'junk bond'.
This rating change reflects an improvement in the financial stability of the Hellenic Republic, particularly in the face of potential economic shocks and a more rapid recovery of public finances than previously anticipated.
In a statement, Moody's pointed to several factors contributing to this upgrade.
The agency highlighted the government's roadmap for institutional improvements, which is yielding positive results alongside a stable political environment.
Moody's noted that these conditions are expected to facilitate sustained primary surpluses, helping to gradually reduce Greece's substantial debt burden.
Furthermore, the credit rating agency reported that the health of Greece's financial sector continues to strengthen.
This development diminishes the likelihood of a banking crisis that could adversely affect Greece's sovereign rating.
However, Moody's also indicated that the stable outlook acknowledges that the 'key credit challenges' facing Athens are not expected to be resolved in the near term.
The timeline for addressing these challenges will depend, in part, on the maintenance of institutional and political stability.
In a separate note, the exchange rates for the US dollar on March 17, 2025, were reported as follows: sales at ¢501.96 and purchases at ¢495.64, as per the Central Bank of Costa Rica's reference rates.
This rating change reflects an improvement in the financial stability of the Hellenic Republic, particularly in the face of potential economic shocks and a more rapid recovery of public finances than previously anticipated.
In a statement, Moody's pointed to several factors contributing to this upgrade.
The agency highlighted the government's roadmap for institutional improvements, which is yielding positive results alongside a stable political environment.
Moody's noted that these conditions are expected to facilitate sustained primary surpluses, helping to gradually reduce Greece's substantial debt burden.
Furthermore, the credit rating agency reported that the health of Greece's financial sector continues to strengthen.
This development diminishes the likelihood of a banking crisis that could adversely affect Greece's sovereign rating.
However, Moody's also indicated that the stable outlook acknowledges that the 'key credit challenges' facing Athens are not expected to be resolved in the near term.
The timeline for addressing these challenges will depend, in part, on the maintenance of institutional and political stability.
In a separate note, the exchange rates for the US dollar on March 17, 2025, were reported as follows: sales at ¢501.96 and purchases at ¢495.64, as per the Central Bank of Costa Rica's reference rates.
