KBRA Assigns BBB-/K3 Ratings to the Hellenic Republic; Positive Outlook
24 Nov 2023 | Dublin
KBRA Europe (KBRA) assigns long-term issuer ratings of BBB- to the Hellenic Republic (Greece). KBRA also assigns short-term ratings of K3 to the sovereign. The Outlook on the long-term rating is Positive.
| This credit rating is an unsolicited credit rating | |
|---|---|
| With Rated Entity or Related Third-Party Participation | No |
| With Access to Internal Documents | No |
| With Access to Management | No |
KBRA’s credit ratings for Greece reflect its high public debt but also the sharp pace of fiscal consolidation and debt reduction in recent years. In KBRA’s view, the profile of Greek debt mitigates concerns, with a large and affordable official creditor component. The Greek economy is now exhibiting a strong recovery after a very turbulent period following the Global Financial Crisis and Greek debt crisis thanks to pronounced fiscal austerity and the post-default environment. Notably, employment and growth have outperformed and a meaningful internal devaluation has helped improve macro prospects. The Positive Outlook reflects KBRA’s view that Greece will continue to make progress on fiscal consolidation and also benefit from strengthening Euro Area coordination. The National Recovery and Resilience Plan supports strengthening creditworthiness. These funds, coupled with ongoing structural reforms, have the potential to lift growth and make government finances more resilient. A stable political environment also underpins the Outlook.
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