Fitch Ratings on Friday announced an upgrade of Greece’s long-term foreign-currency issuer default rating (IDR) to BB+, up from BB. The ratings firm also listed the outlook as “stable”.

According to Fitch’s assessment, it forecasts “…better deficit and debt outturns and projections in 2022-2024, thanks to stronger nominal growth, budget over-execution and a favourable debt-servicing structure. We forecast a further narrowing of the general government deficit to 1.8% of GDP in 2024 from an estimated 3.8% in 2022.”

Fitch also cited reduced banking sector risks, structural strengths, an improved macro-outlook, and reform momentum.

Conversely, the ratings firm forecast that inflation in the east Mediterranean country will ease, although the risk will persist.

The entire rating action report is here: Fitch Upgrades Greece to ‘BB+’; Outlook Stable (fitchratings.com)

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