On the day before the first anniversary of the accession to power of Alexis Tsipras, the young Greek Prime Minister radical left, the sovereign rating of Greece increases from CCC + to B- with a stable outlook.
The note had been raised in July, when Mr. Tsipras had accepted a third plan of aid to the country in five years, to the tune of 86 billion euros, with conditions of drastic reforms.
“ By the end of March, despite disagreements between the government and its creditors, we believe that Greece will meet the terms (of reform) attached to the financial assistance program (. ..), paving the way for talks on a formal debt relief , “said S & amp; P.
Athens indeed hope that the country’s creditors (EU and IMF) will agree to enter into negotiations on its huge debt (of around 200% of GDP) if it successfully passes the first evaluation of reforms under its program.
Some, such as the pension reform currently under discussion, are particularly hard and already arouse the discontent of the population.
The rating agency also noted that Greek banks were recapitalized by the government since last summer, and that it “ has implemented fiscal consolidation measures “.
So, “ despite many shocks, the economy was more resilient than we had originally expected ” concedes S & amp; P.
The stable outlook reflects S & amp; P considers “ balanced ” change risks affecting this note.
Obligations rated B are still quite vulnerable to non-payment, but it is considered that the issuer “ has the ability to honor “. CCC rated bonds are just as vulnerable to non-payment, since the issuer is “ dependent ” surrounding economic conditions to honor them.
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