Moody's has upgraded Greece's sovereign credit rating by two notches, from 'C' to 'Caa3', reflecting the country's ongoing fiscal consolidation and the bottoming out of its economy. The rating outlook is 'stable'. However, the short-term rating remains at a 'not prime' level.
The report notes that although the country faces growth and political uncertainties, the government has implemented significant fiscal consolidation measures. It is expected that a primary budget balance will be achieved this year, potentially exceeding targets, and a surplus may be realized next year in accordance with the adjustment program. Furthermore, progress has been made in improving the medium-term economic outlook. Additionally, following previous debt restructuring and official assistance, the Greek government's interest burden has been significantly reduced.
