S&P raises Greece’s credit rating to BBB-; country eyes return to ‘investment grade’ territory

Standard and Poor’s (S&P) on Friday upgraded Greece’s credit rating to BBB-, with a stable outlook, up from BB+, a long-awaited development for the center-right Mitsotakis government in its bid to return the country’s bonds to “investment grade” territory.

The S&P decision, mostly forecast by a handful of international investment banks, means that one of the “Big three” credit rating agencies has upgraded Greece to “investment grade”.

Last month Moody’s, the strictest of the “Big Three”, raised Greece’s rating by two notches to Ba1, one step below its investment grade index.

An upgrade by Fitch, which will issue its next review for sovereign borrowers on Dec. 1, will mean that two out of the three largest ratings agencies will include Greece in their “investment grade” rankings. Such a development will allow several major investment funds the right to purchase the country’s debt.