Moody’s rating agency maintained Greece’s credit rating at Ba1 on Friday night, citing obstacles to reforms, particularly in the justice sector, and identified risks that delayed the country’s upgrade, dealing a blow to the government’s efforts.
Greece continues its pursuit of an investment-grade rating from all agencies, aiming to shake off the “junk” status inherited from the 2010 crisis. However, Moody’s remains the only agency yet to grant Greece an investment-grade rating, holding its credit rating at Ba1.
News of lower GDP in 2023 prompted the economic council to address concerns following a report from an American agency.
Government officials from the Ministry of National Economy and Finance explained that Moody’s had upgraded Greece’s economy by two notches just six months ago, in September 2023. They noted that further upgrades were not anticipated in such a short timeframe, as rating agencies typically allow a reasonable period between assessments.
Moody’s report outlines the path for continued economic policies and fiscal consolidation, emphasizing the importance of implementing remaining reforms, particularly in the judicial system. These reforms are crucial for enhancing resilience to external shocks, accelerating fiscal improvement, and tackling non-performing loans, which would contribute to a higher rating.
In summary, Greece must address issues beyond fiscal matters, such as justice, corruption, and public administration reforms, to achieve an A+ rating.
