Moody’s revises Greece outlook to ‘positive’, maintains ratings at ‘Ba1’ By Reuters

(Reuters) – Credit rating agency Moody’s (NYSE: ) revised its outlook for Greece to “positive” from “stable” on Friday, citing a healthier banking sector and better-than-expected economic performance.

The agency also affirmed its rating for Greece at ‘Ba1’. It is the only rating agency that continues to classify Greece as non-investment grade, placing it one step below the investment grade threshold.

Greece has seen a number of rating upgrades recently, with S&P Global Ratings upgrading in April and Fitch in December after 13 years in the junk category.

Since 2020, the nation’s debt, the largest in the euro zone, has fallen by 40 percentage points to 160% of its gross domestic product in 2023 and is expected to fall further to 152% of GDP by the end of this year .

“With the possibility of economic growth and fiscal performance exceeding our expectations, Greece’s fiscal strength could improve faster than currently expected,” Moody’s said in its report.