Goldman Sachs says investment grade for Greek economy a possibility in near future

Goldman Sachs appears positive over the prospect of Greece achieving a coveted investment grade rating, with a possible upgrade coming as soon as April 21, despite the country’s now being in a pre-election season.

A general election was called by incumbent Prime Minister Kyriakos Mitsotakis for May 21, 2023, with the prospects of a second election in the summer to elect a majority government a high probability.

The first international rating firm to issue a report on the Greek economy will be S&P, on April 21.

S&P, DBRS and Fitch now assess the Greek economy at one grade below investment level .

Conversely, Moody’s is the strictest “judge” of the Greek economy among the “Big 4”, keeping it three levels below investment grade on its evaluation system.

The Goldman Sachs report coincides with today’s successful issue of a five-year bond by the Greek state, with offers exceeding 19 billion euros, oversubscribing the issue by eight times.

Greece drained 2.5 billion euros from the markets, with the final yield closing at 90 basis points from the mid swap, namely, at 3.92 percent.

Attaining an investment grade rating after a decade-lone economic meltdown and three successive bailout memorandums would be a fillip for Mitsotakis and his ruling New Democracy (ND) party heading into an election battle.