Canadian rating agency Morningstar DBRS has maintained Greece’s credit rating at BBB, confirming a stable outlook in its second review of the Greek economy this year.

It is worth noting that in March, DBRS was the first agency to upgrade Greece’s credit rating by one notch into investment grade, also with a stable outlook.

“The stable trend reflects DBRS’s view that short-term risks to the credit ratings are balanced,” the agency said in its announcement.

The Greek economy grew by 2.3% in 2024, significantly above the Eurozone average of 0.9%. The European Commission projects a similar growth rate for Greece this year.

Strong domestic demand has been the main driver of GDP growth, fueled by rising employment and EU-funded investments, according to the Athens-Macedonian News Agency.

This robust economic expansion, combined with recurring primary budget surpluses, has led to a steady decline in the debt-to-GDP ratio. The European Commission expects the ratio to fall to 141% by 2026, down from 164% in 2023.

However, as with other European economies, Greece remains vulnerable to external risks. “Any further deterioration in the geopolitical or global trade environment that weakens external demand will inevitably affect Greece’s exports and weigh on the broader economy,” the report noted.

Greece’s BBB rating is underpinned by the country’s reliable policy framework and its membership in the European Union and the Eurozone.

“Successive Greek governments have implemented major reforms that strengthened governance, improved the business environment, and supported debt sustainability. The strong political commitment across major parties to prudent fiscal policy also bolsters Greece’s credit quality,” DBRS added.

According to the agency, the IMF projects Greece’s primary budget surplus to average 2.4% of GDP through the end of the decade, while public debt is expected to fall to 125% of GDP by 2030.

Nevertheless, Greece’s ratings remain constrained by its still high public debt, relatively small economy, and persistent current account deficit.

Other agencies, including S&P and Scope, maintain a similar stance.

Upcoming Reviews

In the coming months, Greece’s credit rating will be reassessed by four major agencies:

• Moody’s on September 19
• Standard & Poor’s on October 17
• Scope Ratings on November 7
• Fitch Ratings on November 14