The credit agency Fitch has raised Greece’s credit rating by one level, justifying its decision by the reduction of the country’s budget deficit and the risks of withdrawal from the eurozone.
After nearly exiting the eurozone last year and facing criticism for delays in implementing reforms, Greece has recently been praised by its international lenders for stabilization and the implementation of unpopular austerity measures.
“The cost has been high in terms of lost production and rising unemployment, and the ability to recover is still questionable,” Fitch assessed. However, Greece’s outlook is stable, Fitch stated, explaining the upgrade of Greece’s rating from CCC to B-minus.
Previously, Standard & Poor’s also raised Greece’s rating to B-minus while Moody’s rates Greece’s credit at C. All ratings, however, remain deeply in the ‘junk’ category.
Fitch stated that it expects a milder recession in Greece this year and a weaker recovery in 2014, which is largely in line with the forecasts of the European Union and the IMF.
