Credit rating agency Standard & Poor’s upgraded Greece’s sovereign credit rating to BBB from BBB- on Friday, with a stable outlook.
The move solidifies Greece’s position within investment-grade territory, signaling confidence from international markets amid a volatile global environment.
S&P first restored Greece to investment grade in October 2023 and revised the country’s outlook to positive in April 2024.
It is now the third of five credit agencies recognized by the European Central Bank—after Scope and DBRS—to issue an investment-grade upgrade for Greece in recent months.
Strong Fiscal Track Record
In its statement, S&P attributed the upgrade to Greece’s continued fiscal discipline, improved tax compliance, and resilient economic growth.
The agency said these factors allow the country to exceed its fiscal targets and support ongoing debt reduction.
Despite a challenging global backdrop, S&P projects that Greece’s net debt-to-GDP ratio will fall steadily—by six percentage points annually—over the next four years.
The agency also pointed to the Public Debt Management Agency’s cash buffer, estimated at 15% of GDP, as an added safeguard covering nearly three years of debt maturities.
“We raised our long-term sovereign credit rating on Greece to ‘BBB/A-2’ from ‘BBB-/A-3.’ The outlook is stable,” the agency said.
Finance Minister Kyriakos Pierrakakis welcomed the development, calling it a “strong signal of confidence in Greece,” especially during times of global uncertainty.
“Greece is returning to the map, climbing another step in the investment-grade ladder,” Mr. Pierrakakis said in a statement.
Citing the S&P report, Mr. Pierrakakis noted that Greece is projected to maintain primary budget surpluses of 2.7% through 2028, while the economy is expected to grow at an average annual rate of 2.4%.
By the end of that period, the country's debt is expected to be 50 percentage points lower than in 2019—one of the most significant reductions globally in recent years.
S&P also highlighted that employment has returned to pre-crisis levels, with forecasts indicating further declines in unemployment and broad-based income growth.
“The BBB rating marks the beginning of a new era of economic openness, competitiveness, digitalization, and innovation,” Mr. Pierrakakis said. “Greece is now a stable and reliable business destination.”
Broader Government Response
Deputy Prime Minister Kostis Hatzidakis also praised the upgrade, stating that it validates the government’s six-year record of economic reforms, despite criticism from opposition parties such as Syriza and Pasok.
“While some continue to doubt the progress made in recent years, one credit agency after another confirms the improvement in Greece’s economic standing,” Mr. Hatzidakis said.
He underscored S&P’s recognition of the government’s fiscal prudence and its efforts to combat tax evasion.
“This upgrade is not just a success for Prime Minister Kyriakos Mitsotakis’ government—it is a success for the entire Greek people,” Mr. Hatzidakis added.
The upgrade comes as Greece seeks to attract more foreign investment and solidify its economic recovery following a decade-long debt crisis.