International rating agency Fitch has upgraded Greece’s long-term foreign and local currency issuer default rating (IDR) outlook to positive from stable and affirmed it at ‘BB’, the agency said in a statement.

« Fitch Ratings has revised its outlook on Greece’s long-term foreign currency issuer default rating (« IDR ») from stable to positive and affirmed the IDR at ‘BB’, » the press release reads.

The outlook revision reflects economic growth momentum: the agency expects a further recovery in economic activity – and a reduction in the budget deficit, which, according to the agency, will contribute to a faster-than-expected reduction in government debt. Fitch estimates that the debt ratio (ratio to GDP) will fall to 190.3% this year and then to 185.3% by the end of 2023.

Fitch also reports that the reduction in the public debt-to-GDP ratio as a result of the lower budget deficit, as well as strong GDP growth, could lead to an upgrade of the country’s rating.

source: fitchratings.com