International credit rating agency Moody’s maintained Greece’s Baa3 rating with stable outlook in its six-month report on Friday.
Moody’s had upgraded Greece to investment grade in March.
In its most recent report, it supported its Baa3 rating with stable outlook based on a firm history of reforms that has led to visible improvements in institutions and governing, stronger investments, and a healthy bank sector.
Regarding the debt, the credit rating agency said that despite its great reduction, its ratio to GDP remains very high. However, it added, the debt’s favorable structure and the great liquidity margin were significant factors in offsetting the debt’s high ratio.
In addition, the Greek economy has shown a strong absorption of important European Union funds, which, combined with private investments, will support development in coming years, Moody’s said. Along with the continuing reforms, this will contribute to raising its potential development rate and will partially offset the negative repercussions of unfavorable demographic developments, it added. [AMNA]