Within tier maintained Greece Moody’s in the much -awaited country’s evaluation report.
Moody’s has confirmed the BAA3 investment grades with a stable Outlook for the Greek economy, as it did not rule that conditions have been sufficiently changed for a positive or negative decision to evaluate Greece’s honorable.
It is recalled that S&P, DBRS and Scope Ratings give BBB credit rating for Greece, a tier above the Investment Grade with a fixed outlook, while Fitch, like Moody’s, hold the Greek economy.
Moody’s supports Greece’s BAA3 evaluation with a fixed outlook in consistent history of recent years, which has significantly improved institutions and governance, has strengthened the investment environment and led to a healthier image of the banking system.
Despite the significant declining, the debt ratio to GDP remains at very high levels. As a compensation, the structure of public debt is considered favorable and the available cash reserve, limiting the relevant risks.
The Greek economy is demonstrating high absorption of European resources, which in combination with private investment support the development perspective of the coming years. Continuing reforms is expected to boost the potential growth of growth, partially compensating the pressure from the unfavorable demographic.
Moody’s records ongoing public finances. In 2024 the primary surplus stood at 4.8% of GDP, significantly above the initial target of 2.1%, with pushing against tax evasion and constant nominal development. This combination led to an annual decline in debt to GDP over 10 points. The dynamics continued in 2025, allowing the review upwards of the target for primary surplus, along with additional support for low and medium -income households. On the ESAA front, progress is considered substantial in both grants and loans; with disbursements of 59.3% of the total file, the plan was reviewed to maximize the absorption of other resources.
In the evaluation of the foundations, the economic power is placed on “BAA1”, combining higher levels of wealth than countries with corresponding levels and strong three -year perspectives, with a moderate economy size and structural pressure on potential development due to demographics. The grading of institutions and governance in “BAA1” is also attributed to continuous implementation of tangible reforms, while the 2012 restructuring is still burdened with the final image. The budgetary power is rated in “BA1”, reflecting debt very high but rapidly declining, with favorable structure (low interest rates, high expires). Sensitivity to events is evaluated in “BAA”, with the banking system remaining a source of danger despite a large decrease in NPLs.
The steady prospects incorporate the estimate that very strong current fiscal performance will be gradually mitigated, although debt will continue to divergent. At the same time, it is recognized that basic growth reforms need time to complete, while economic growth is expected to slow down after RRF’s absorption is climbed. The adverse demographics add obstacles, even if employment policies and skills attribute. Despite the rapid decline in recent years, the debt to GDP is projected to remain from the highest in the rating system by the end of the decade.
Upgrading the BAA3 grade requires an increasing chance that the medium -term growth potential exceeding current estimates. Faster progress in the effectiveness of justice or greater differentiation of the economy would work, as well as debt reductions significantly above the basic scenario, provided that they are considered sustainable. On the contrary, reversal of the political course of recent years or indication that reforms do not translate into developmental and fiscal benefits would exert a downward pressure. The same would be true in the event of a constant deterioration of fiscal in combination with a backlash in bank health or structural reforms. A serious deterioration of the European geopolitical environment, with tangible signs of weakening support by key allies, could also burden prospects and evaluation.