S&P Upgrades Greece to BBB-/A-3 With Stable Outlook

By Stephen Nakrosis

S&P Global Ratings said Friday it upgraded Greece to BBB-/A-3, adding its outlook on the nation is stable.

In April, S&P raised Greece's outlook to positive from stable, while affirming the country's BB+/B rating.

S&P said "significant budgetary consolidation" improved the nation's fiscal trajectory. "Supported by a very rapid economic recovery, the Greek government has been able to regularly outperform its own budgetary targets despite gradually increasing social transfers," S&P said.

The agency said it is expecting real GDP growth of 2.5% for 2023, and believes government will achieve a primary surplus of at least 1.2% of GDP this year. It also sees an average primary budget surplus of 2.3% of GDP over 2024-2026.

The outlook reflects risks in the external environment and expectations "persistent primary budget surplus targets will continue to drive the reduction in government debt," S&P said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 20, 2023 17:23 ET (21:23 GMT)

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