The Greek economy will face consecutive “stress tests” over the first half of 2023 by international credit rating firms, as the previously crisis-battered country strives for a coveted investment grade rating.
The period, of course, will coincide with a campaign season in the country, as a general election will take place. Although the Mitsotakis government would relish an investment grade rating before the election, most analysts believe an upgrade will come – if it comes – in the summer, after any election. One reason is that two separate trips to the ballot box are possible, given that the current electoral system leans heavily towards the simple representational, making the prospect of electing a majority government more difficult. Any repeat election – within weeks – will be conducted with a system that favors the first-past-the-poll party.
The first test comes on Jan. 27, when Fitch will issue its latest credit rating for the country. S&P will follow on April 21.
Greek debt is two notches down from investment grade on Fitch’s ratings scoreboard, and one down on S&P’s and DBRS’s; three notches from the coveted rating on Moody’s scale.
Two of the ratings agencies recognized by the ECB are S&P, which raised Greece to BB+ last April, and Canada-based DBRS, which raised Greece to ΒΒ (high) in September.
The situation, nevertheless, is dramatically different when compared to the advent of the crisis in 2009, when ratings agencies downgraded Greek titles into the funk category, essentially precluding the country from sovereign borrowing.
Despite an exit from the memorandum years, Greek titles have still not return to the high marks of pre-2009. The pandemic also delayed the attainment of an investment grade ratings, although since 2019 Greece has been upgraded 11 times.
Latest News
Greek Hotels Vindicated by Commission’s Ruling on Booking.com
The Commission has ruled that Booking is a "gatekeeper" and must comply with the Digital Marketing Act, addressing complaints by the European Hotel Industry and Hellenic Chamber of Hotels
Which Islands Will Have Italians Flocking to Greece this Summer?
Well-known Italian travel magazine details reasons why Skopelos, Naxos and Astypalaia are the go-to summer destinations for Italians
Antentokounmpo 5th Highest Paid Athlete in World
The basketball player rakes in 111 million dollars per year, between his salary at the Bucks and endorsements from big brands like Amazon, Nike and Pepsi
Greek FM Gerapetritis: Need to Immediately End Gaza Hostilities
Gerapetritis added that a humanitarian crisis was transpiring in Gaza, with the concerns now being spillover in the wider Middle East.
ETC Report: Greece 3rd Most Popular Destination for Europeans
Italy and Spain are tied as the top destinations, each attracting 8% of travelers
Greece Battles EC to Protect Rice Industry and Public Health
Together with several other EU countries, Greece successfully blocked the European Commission's proposal to increase allowable levels of a banned pesticide commonly found in rice imported from southeast Asia
Eurostat: 3.2% Annual Inflation in Greece in April
The data shows that Greece ranks seventh in overall inflation within the eurozone and second in food inflation
Intrum’s 2024 Report Unveils Greek Businesses Embrace Digitalization for Growth
Looking ahead, over 40% of businesses prioritize development for 2024, with 65% recognizing the potential of digital business models as sustainable investments
IOBE: Mild Drop in April Business Confidence Index (BCI) in Greece
The positive balance of expectations for employment witnessed a marginal decline, while the index for production forecasts also recorded a mild drop
Greek PM Mitsotakis Calls on EU to Intervene Over Multinationals’ Pricing Policy
Speaking about price fairness, the Prime Minister emphasized, "Europe should also mean similar or uniform prices for the products sold by our multinational corporations.