Greece was upgraded from “selective default” up to B minus with a stable outlook on Tuesday by the ratings agency Standard and Poor’s.
S & P said that they decided to lift the rating citing the country’s successful completion of a bond buyback scheme last week, which was part of a deal reached with the EU and IMF as a condition for Greece to receive further financial aid. A total of 49.1 billion euros in aid will be disbursed to Greece by the end of March. S&P had downgraded Greece in early December before the Greek bond buyback.
“The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone,” S&P said.
“The outlook on the long-term rating is stable, balancing our view of the government’s commitment to a fiscal and structural adjustment against the economic and political challenges of doing so,” the agency added.
“This was a very important decision for Greece but we won’t rest,” Stournaras said. “It creates a sentiment of optimism but the way ahead is long and steep.”