Moody's Upgrades Greece to Stable
Today, Moody's Investor Service enhanced Greece's banking outlook rating from negative to stable, showcasing predictions that its 2014-2015 economy would grow, after six years of hardships.
Moody's reported: "...the gradual economic recovery, coupled with Greek banks' recapitalizations and regained access to inter-bank and international capital markets, will further ease funding pressures and lead to a gradual recovery of pre-provision profitability in 2015. In addition, the outlook also takes into account the expected deterioration in asset quality and capital metrics in 2014, although at a much reduced pace than before".
The rating firm believes Hellenic financial institutions will increasingly improve, even with consistent frail domestic demand, concerning unemployment levels and wage decreases. Moody's noted an improved financial metrics normality, over a 12-18 month time period.
The credit ranking agency predicted concrete GDP strides at 0.3% in 2014 and 1.2% in 2015, due to the export and tourism sector. Structural reforms are continuously reconstructing Greece into a more ambitious export-driven economy, versus a consumer-led growth standard.
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