Moody’s says Greek credit profile reflects progress in economic reforms

Greece’s stable credit profile balances government reforms in the last few years, accelerating economic growth, Moody’s said in a report. The country’s big public debt remained the main challenge for its credit rating, it added.

The credit rating agency said that the country’s credit profile reflected a relatively high level of wealth in relation to the economy’s limited size and its limited differentiation. The current government has improved the country’s institutions and the governance in several sectors. “Thus, the country benefits from a favorable structuring of the debt, a significant cash buffer and a strong abiility of debt servicing,” the report said. There will be pressure to upgrade the Greek debt if further progress in structural reforms offered visible results in the form of stronger investments and enhanced further medium-term growth prospects,” said Steffen Dyck, vice-president and author of the report.

“On the other hand, there will be downward pressure if progress in reforming Greek institutions is reversed, putting at risk an agreement with its partners in the Eurozone,” the report noted.