OR Standard & Poor’s (S&P) did not deny expectations for upgrading her Greece on a higher step of the investment grade with the evaluation report of yesterday (18.04.2025).
S&P gave the Greek Economy of the BBB with steady prospects, following the same path that DBRS and Moody’s recent upgrades have drawn.
Yesterday’s evaluation shows that Greece did not fall victim to the uncertainty generated by the trade war, despite the fact that the house had announced the degradation of all its macroeconomic forecasts for 2025.
The government was hoping until the last minute that it would not be so directly affected by the chaos of duties, the expected upgrade of our country, wanting to follow the example of Italy, which, despite the negative global omen, managed to get the upgrade to BBB+ from the US.
In this regard, the positive prospects that the house “saw” for the Greek decity in its previous evaluation was advised, foreshadowing future upgrades.
Essentially, with yesterday’s evaluation, Greece manages to “climb” with S&P’s (after the Canadian DBRS) in a higher investment level, which gives both the debt markets and the other two ratings (Fitch and Moody’s) in borrow in even better terms by dropping its borrowing costs.
At the same time, it is consolidating the country more and more deeply within the investment level, leaving behind the mark of the memorandums and the debt crisis and the risk of slipping back into the Junk category.
As a result, despite international counterbalances due to the shocks of the global duty economy, the Greek economy seized the opportunity for yet another upgrade, which is an additional assurance of a rapid reduction in debt and high growth rates.
It thus shapes a safer environment for investment by reducing the cost of funding for businesses, and more fiscal comfort for interventions and relief measures to citizens.
What are the challenges
But the international turbulence of duties is here to change everything. Although Greek bonds have reacted in recent weeks better than the respective European debt markets, the challenges for our economy are not lacking and needing answers and solutions. While S&P describes the danger of Greece as “manageable” as it has little exposure to the US, it says that “we still see a risk of escalating the trade war”, which could have unpredictable consequences.
As S&P pointed out, the country will have to face the challenge of the expiry of the recovery fund, delay in reforms, such as justice and land registry, poor performance in corruption perception indicators, as well as demographic issues facing Greece, with its shrinkage. The climate risks should not be forgotten in which our country is particularly exposed.
Chronic problem is the weak extroversion of our economy with the current transaction deficit being over time, and in terms of banks, despite the rapid reduction of red loans in its balance sheets, their overall stock in the financial system as a whole remains large, which remains large and large.
The evaluation house does not fail to mention the case of Tempi, where it stresses that although it does not see political stability being affected, it has hurt the ruling party in the eyes of citizens, recording increasing frustration.