DBRS: Sunday’s vote could lead to credit improvement for Greece

The result of the general elections in Greece, with the win of New Democracy, signals the continuation of a period of political stability and the implementation of reforms that strengthen economic growth, paving the way for credit improvements, DBRS Morningstar said in a report on Tuesday.

“If New Democracy manages to keep its share of votes, combined with the same high share of parties not reaching the 3% threshold, the outcome of a second election could result in a strong outright majority for ND. This will bring another period of political stability for Greece. ND’s potential win would give it a mandate to continue with the implementation of reforms and investments, increasing Greece’s growth prospects. Improved growth prospects from the expected 30.5-billion-euro Recovery and Resilience Fund (RRF) expenditures for reforms and investments, is a contributing factor to potential credit improvements in DBRS Morningstar’s rating for the Hellenic Republic of BB (high) with a Stable trend,” DBRS said.