Multinational investment bank Citigroup forecasts the rating of Greece will be raised by a notch within the next nine months from the top two credit rating agencies, S&P and Moody’s, which control 80% of the market.
This would mean that S&P would assess Greece one level above “investment grade,” while Moody’s—currently the only one of the five agencies yet to do so—would finally grant Greece full “investment grade” status.
The Citigroup forecast on Greece follows the upgrade of the country’s credit rating to “BBB” (from “BBB-”) by Scope Ratings at the end of 2024.
Scope became the first of the five major rating agencies—alongside S&P, Fitch, DBRS, and Moody’s—recognized by the European Central Bank to rate Greece one notch above the “investment grade” threshold.
Analysts anticipate that these additional upgrades will bolster Greek bonds and assets.
This could unlock an additional €10 billion in investment flows into Greek bonds. Many asset management firms operate under regulations that allow them to invest only if both of the top two rating agencies assign a country an “investment grade” rating.
Meanwhile, according to DZ Bank, Greece was among the biggest winners in terms of sovereign credit rating improvements in Europe last year. The bank expects Greece to reach Italy’s current credit rating level in the medium term.
A key driver behind the upward trend in ratings for Southern European countries, including Greece, is the ongoing reduction in public debt. This trend is strengthening investor confidence and positioning Greece for continued economic progress in the coming years.
