(Bloomberg) — Greece’s sovereign-credit rating was lifted to investment status by DBRS Morningstar — the country’s most significant upgrade out of junk since it was rocked by a debt crisis more than a decade ago.
As well as representing a seal of approval for Prime Minister Kyriakos Mitsotakis’s economic agenda, DBRS is one of the ratings companies recognized by the European Central Bank, meaning Greek bonds will no longer face higher-than-normal haircuts when used as collateral in refinancing operations.
Friday’s announcement, after the close of European markets, brings Greece’s rating to BBB (low).
“The Greek authorities will remain committed to fiscal responsibility, ensuring that the public debt ratio stays on a downward trend,” DBRS said in a statement. “The significant improvement in fiscal and debt outcomes is bolstered by Greece’s government’s strong commitment to the implementation of a prudent fiscal plan that drives the rating upgrade.”
While markets have largely priced in Greece’s return to the investment cohort, the achievement — a key re-election pledge by Mitsotakis — is seen as marking the end of the debt-crisis era. Other ratings companies are likely to follow suit in the coming months, with Japan’s Rating and Investment Information Inc. and Germany’s Scope Ratings already having done so.
The move means further improvement in lending costs, higher investments in the country, growth and new jobs, Finance Minister Kostis Hatzidakis said.
Mitsotakis easily won a second term in office in June. His business friendly platform includes returning the budget to primary surpluses of 2%-2.5% of gross domestic output, cutting the debt ratio below 140% of output by 2027 from the highs of 206% in 2020, and early repayment of part of Greece’s rescue loans.
The economy is expanding, too. Second-quarter data published this week showed expansion of 1.3% from the previous three months, driven by consumption and investments. First-quarter figures was also revised higher.
“As the Recovery and Resilience Plan (RRP or Greece 2.0) continues to be implemented, investment will remain an important source of growth, although there are external downside risks,” DBRS said.
“The election result brings another period of political stability to Greece and secures policy continuity,” DBRS said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
