The credit profile of Greece (issuer rating B1) is supported by the country’s “Moderate” economic strength, Moody’s rating agency said in an announcement of the completion of its periodic review of the country. The rating agency noted that the announcement, issued on Thursday, was not a credit rating action nor an indication that such an action was likely in the near future.
The country’s credit profile reflected higher wealth levels than peers at similar rating levels, a moderately sized economy with moderate levels of diversification balanced by the still significant uncertainty over medium-term growth prospects, given adverse demographics as well as low investment and savings rates, the announcement said.
“Greece’s “Moderate (-)” institutional strength takes into account the still weak scores for rule of law, government effectiveness and control of corruption, as measured by the Worldwide Governance indicators balanced by an improved track record of legislating and implementing agreed reforms. “Low (+)” fiscal strength reflects the government’s very high debt burden balanced by a benign debt structure with very low interest rates and very long maturities. “High (+)” susceptibility to event risk is driven by banking sector risks,” it noted.