Yesterday, Moody's upgraded Greece's sovereign credit ranking, due to the government's considerable fiscal strides to a stable outlook.
The corporation stated, "The first factor behind the upgrade of Greece's rating is Moody's strengthened expectation that the general government debt to GDP ratio will start declining in 2015".
Moody's added, "The government's progress in fiscal consolidation under its economic adjustment program underscores the improvement in the debt trajectory". Greece now stands two grades above at "Caa1", from a previous "Caa3".
The rating firm commended the government's labor market reform attempts and its advancements regarding product markets, while stating that its structural reform acts have "mixed results", as reported by Kathimerini. Moody's commented, "These reforms have led to wage and price adjustments, which far outstrip adjustments elsewhere in the euro area periphery".
The credit ranking agency did reference a "continuing, high level of political uncertainty" and did not dismiss the possibility of early elections in the beginning of 2015. Moody's claimed, "The prospect of early elections, the result of which are highly uncertain, increases the risk of delays in policy implementation at a critical juncture of the economic adjustment program", according to Reuters.