As what got here as a shock, Moody’s score company upgraded Greece’s score from B1 to Ba3 with a secure outlook regardless of the worldwide economic system dropping due to the COVID-19 pandemic.
Though Moody’s estimates the Greek economic system will shrink by 9% this 12 months, the score company mentioned Greece could have a robust rebound and continue to grow within the medium time period by three.5% per 12 months.
In response to the stunning announcement, Greek Prime Minister Kyriakos Mitsotakis mentioned on Twitter “Moody’s improve of Greece’s score, which got here within the midst of a world recession, is a robust vote of confidence within the development prospects of the Greek economic system submit Covid.”
Moody’s improve of Greece’s score, which got here within the midst of a world recession, is a robust vote of confidence within the development prospects of the Greek economic system submit Covid. 🇬🇷
— Prime Minister GR (@PrimeministerGR) November 7, 2020
”Ongoing reforms assist a sustainable enchancment in institutional power and have already introduced tangible progress in areas together with tax administration and compliance and the battle towards corruption,” the company mentioned in its report.
“In Moody’s view the danger of reversal of those essential enhancements is low. Moody’s considers this motion to be motivated partly by governance-related components underneath its ESG framework,” the company report defined.
“The nation’s development prospects over the approaching years are optimistic however the damaging close to time period influence of the pandemic notably on the tourism sector. Greece’s economic system will profit from ongoing efforts to enhance the funding local weather coupled with inflows of very substantial European restoration funds,” the report continued.
“Favorable development prospects, mixed with a return to a prudent fiscal stance, will result in a gradual reversal within the public debt pattern. As well as, Greece advantages from a really favorable debt construction and robust affordability,” it famous.
“It is a notably optimistic improvement for our nation,” acknowledged Finance Minister Christos Staikouras late on Friday. “This score passed off in situations of unprecedented recession within the world economic system and within the nationwide economies, in addition to of excessive uncertainty attributable to the pandemic.”
“It constitutes proof of elevated confidence within the nation and the federal government for the administration of the present disaster, its reforms, and the general prospects of the Greek economic system,” added Staikouras.