Moody’s maintains Greece’s B3 credit rating with positive outlook

Greece’s growth rate for GDP is forecast at 2%, Moody’s rating agency said late on Wednesday, maintaining the country’s rating at B3 with a positive outlook.

In a regular update report, Moody’s saw slightly stronger growth in 2019, and said “the upside potential to growth is larger that the downside risks in our view, as planned tax reductions (…) could provide a bigger boost to confidence and spending than we currently assume.”

The rating agency warned that “the potential for faster-than-expected economic growth in the coming years (…) requires continued focus on the part of the Greek authorities on fully implementing the agreed institutional and banking sector reforms.”

Factors that could lead to an upgrade, it said, included continuing prudent fiscal policies, sustaining reform efforts, and having a successful return to the markets. A downgrade is “currently unlikely,” Moody’s said, but factors that could lead to it would include deviation by the Greek government from agreed commitments or reversal of reforms previously agreed and legislated, or re-emerging tensions with creditors for other reasons.