Standard & Poor’s Ratings Services upgraded its sovereign rating for Greece as it expects the nation to meet the conditions attached to EUR 86 billion bailout package.
The agency lifted the ratings to ‘B-‘ from ‘CCC+’ with stable outlook.
The Greek government has recapitalized the country’s systemic banks, and put into place budgetary consolidation measures since last summer, the rating agency noted.
Moreover, the economy proved more resilient that previously expected despite multiple shocks.
The rating agency expects Greece to meet the conditionality attached to the bailout package, opening the way for discussions on official debt relief.
Net general government debt will increase significantly again to 187.4 percent of gross domestic product, mainly because of nil nominal growth estimated for this year.
The primary surplus is seen at 0.4 percent of GDP in 2016, before increasing to close to 2 percent by 2019, S&P said.
Regardless of what government is in power, Greece will largely comply with the terms of the Eurogroup support program, the agency said.
S&P also retained its ratings for the Czech Republic with ‘stable’ outlook on Friday. The economy is experiencing a period of relatively strong economic expansion and improving public finances, S&P noted. Nonetheless, its aging population poses future fiscal risks, it said.
The material has been provided by InstaForex Company – www.instaforex.com