Fitch upgrades Greece

A major upgrade of the rating of Greece by 6 grades, up to B-, was carried out by Fitch Ratings.

This upgrade is even greater than analysts’ forecasts and expectations of experts talking about upgrading by 5 levels.

Most notable is the fact that Fitch now calls the prospects of Greece "a stable outlook", while for the first time it has upgraded the country’s short-term credit rating from C to B, while it confirmed the Country Ceiling, namely the future of the country, at AAA.

Of particular interest is the country’s ranking on the Fitch scale, with Greek solvency being more than just 5 steps from the exclusion of our bond from the Junk category, ie the one labeled as “non-investment” bonds, and 15 levels from the highest possible AAA rating.

The level of assessment of the Greek economy to date had been categorized and limited to Restricted Default, while analysts predicted that the country would be upgraded by 5 grades.Specifically, Fitch had announced on June 6th that based on the criteria, it would increase the country’s rating after the completion of the bonds exchange.

Specifically, the firm notes that the exchange and participation of bondholders “has significantly improved the debt service profile and the repayment of new government bonds”. Thus, it believes that “there will now be a safety margin for a debt service from 12 to 24 months, which is reflected by the steady improvement in the outlook of the country”.

Similar moves are expected from the other rating agencies, Moody’s and S&P.