Fitch Ratings has upgraded Greece’s long-term foreign and local currency rating to B from B-, with a stable outlook as its fiscal situation starts to improve.
The ratings agency notes key drivers for the upgrade included Greece achieving a primary surplus in the general government account in 2013, and a fall in the near-term sovereign liquidity risk for the country.
Fitch stated: “A better fiscal track record is being established. Greece’s deficit reduction over the past four years of its two programmes has been remarkable. The headline deficit/GDP excluding bank support, has been brought down by 14 percentage points against severe cyclical headwinds. With the most challenging phase of Greece’s adjustment behind it, the rating is becoming less sensitive to policy holdups and political crises.”
Fitch currently has the highest rating for the country among the ‘big three’ rating agencies, with Standard & Poor’s Ratings currently B- on long term foreign and local currency, while Moody’s places it at Caa3.