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(Reuters) – Credit ratings agency Moody’s (NYSE:MCO) revised its outlook on Greece to “positive” from “stable” on Friday, citing a healthier banking sector and a better-than-expected economic performance.
The agency also affirmed its rating for Greece at ‘Ba1’. It is the only ratings agency that continues to classify Greece as non-investment grade, placing it one notch below the investment grade threshold.
Greece has seen a series of rating upgrades recently, with S&P Global Ratings upgrading in April and Fitch in December, after 13 years in the junk category.
Since 2020, the nation’s debt, the highest in the euro zone, has shrunk by 40 percentage points, reaching 160% of its gross domestic product in 2023 and is projected to drop further to 152% of GDP by the end of this year.
“With the possibility of economic growth and fiscal performance exceeding our expectations, Greece’s fiscal strength could improve faster than currently expected,” Moody’s said in its report.
