Scope on Friday evening (Athens time) upgraded Greece’s long-term credit ratings to BBB- (up from BB+) and changed its outlook to stable (from positive). The rating, according to Scope, brings Greece’s credit-worthiness to an investment-grade level.
The Germany-based ratings agency referred to a “strengthening of European institutional support, a favorable trajectory of government debt and banking-sector reforms drive rating upgrade. High government debt, policy risks longer run and banking-system fragilities are challenges.
In a first reaction, Greek Finance Minister Kostis Hatzidakis took to his FB page, where he welcomed the “upgrade of the Greek economy by Germany-based Scope, noting that the return to investment grade means lower financing costs, easier investment and an additional boost to growth and jobs… Those who question the government’s economic policy … would do well to look at the ratings of two international rating agencies, which this week gave our country a so-called investment grade, Japan’s R&I and Germany’s Scope Ratings.”
In a later dispatch, Bloomberg noted that “Greece’s investment-grade status was restored by Scope Ratings, evidence of its progress in repairing public finances 13 years after it became the first euro-zone member to be cut to junk.
“Friday’s decision helps draw a line under the debt crisis that erupted in 2010 and required three international bailout programs as Greece’s membership of the now 20-member euro zone was thrown into question,” the news agency added.
