KBRA Affirms BBB/K2 Ratings for the Hellenic Republic; Outlook Stable
23 May 2025 | Dublin
KBRA Europe (KBRA) affirms the Hellenic Republic’s long-term issuer ratings of BBB. KBRA also affirms the short-term ratings of K2. The Outlook on the long-term ratings is Stable.
| 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 |
The affirmation of Greece’s ratings reflects consistent and substantial fiscal consolidation, a solid growth outlook, and a high but favourably structured public debt profile, largely held by official sector creditors. Early repayments of the Greek Loan Facility and a return to primary surpluses highlight the government’s fiscal discipline. The ratings also incorporate Greece’s above euro area growth performance, supported by robust employment and investment under the National Recovery and Resilience Plan, as well as improved banking sector fundamentals following full state divestment and renewed market access. A stable political and policy environment continues to support reform implementation. Nonetheless, the ratings remain constrained by still-elevated public debt, external competitiveness challenges, and the EU’s highest net international liability position—albeit predominantly on concessional terms. In addition, Greece remains vulnerable to risks arising from global trade disruptions, geopolitical tensions, and protectionist measures.
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