DBRS Upgrades Greek Economy to BBB from BBB Low – Hatzidakis: ‘Vote of Confidence in Our Choices’

The DBRS agency has upgraded Greece’s public credit rating to BBB with a stable outlook from BBB low with a stable outlook. This marks the second upgrade for Greece within the investment grade, following the December upgrade by the German agency Scope (BBB with stable prospects). According to DBRS, the upgrade reflects the belief that previous risks in the banking system have diminished, alongside continued overachievement of fiscal targets. Greek banks have improved their fundamentals, becoming more resilient and well-positioned to provide credit to the economy even after the end of the Recovery Fund (Next Generation EU). The non-performing loan ratio has significantly decreased, nearing the EU average, while deferred tax credits (DTC) are expected to reduce faster than initially anticipated. Additionally, the Financial Stability Fund (FSF) has reduced its stakes in systemic banks, loosening ties between the state and the banking sector. DBRS expects Greece’s debt-to-GDP ratio to decrease by nearly 10 percentage points from 2023 to 154% in 2024, with further reductions projected below 140% by 2027. Finance Minister Kostis Hatzidakis described the upgrade as another vote of confidence in the government’s economic choices, emphasizing the need for prudent economic policy and stability.