Moody's investment grade rating signals end of crisis era for Greece

The agency raised Greece’s long-term credit rating to Baa3 from Ba1, with a stable outlook.

Moody’s was the last major rating agency recognized by the European Central Bank to grant Greece investment-grade status.

Moody’s cited Greece’s improved fiscal resilience, stating, “Public finances have improved faster than anticipated.”

The agency noted a stable political environment, institutional advancements and prudent fiscal policy.

Greece’s debt has fallen nearly 50 percentage points since 2020, reaching 156.1% of GDP by the end of 2024. Moody’s projects further reductions.

Key factors behind the upgrade include public finance reforms, digital tax administration, targeted tax reductions, consistent primary surpluses and effective use of EU recovery funds.

Outgoing Minister of National Economy and Finance Kostis Hatzidakis called the rating a historic moment.

“The last five and a half years were not easy,” Mr. Hatzidakis said. “This is not just a success for the government but for all Greeks.”

Mr. Hatzidakis emphasized the upgrade signals Greece’s return to European economic normalcy.

Greece’s recent €3 billion bond issuance attracted record-high bids, underscoring investor confidence.

Moody’s cautioned Greece still faces long-term challenges, including completing institutional and structural reforms.