Standard & Poor’s rating agency (S & P) upgraded the Greek credit outlook to positive from stable on Friday.
“On July 21, 2017, S&P Global Ratings revised the outlook on the Hellenic Republic (Greece) to positive from stable. We affirmed the ‘B-/B’ long- and short-term foreign and local currency sovereign credit ratings,” the S&P note says.
The rationale of the rating is that, “The outlook revision reflects our expectation that Greece’s general government debt and debt servicing costs will gradually decline, supported by economic recovery, legislated fiscal measures through 2020, and a commitment from Greece’s creditors, specifically from the Eurogroup, to further improve the sustainability of its sovereign debt burden.”
“The positive outlook suggests our view that there is at least one of three chances in the next 12 months to be able to upgrade the leverage,” the report continues.
“We could consider an upgrade if commitments from the Eurogroup to provide further debt relief were approved, allowing for a further reduction in the costs of sovereign debt servicing and a further terming out of the government debt profile,” the agency also says.