Moody's keeps Greek rating unchanged at B3

Moody’s kept Greece's sovereign credit rating unchanged at B3, with a positive outlook, in a credit opinion it issued on Wednesday.

The international ratings agency noted that Greece’s prospects will remain positive as long as the government sticks to the reform program it has pledged, which illustrates that the markets would be upset should Athens avoid to slash Greek pensions from January 2019 as it is supposed to.

“The outlook on Greece’s rating is positive, reflecting in particular the potential for faster-than-expected economic growth in the coming years as past reforms bear fruit. Such an outcome requires continued focus on the part of the Greek authorities on fully implementing the agreed institutional and banking sector reforms,” noted Moody’s.

This note on the credit sector is highlighted as one of the factors that could lead to an upgrade in the near future, along with a good reception by the money markets: “Clear evidence of a successful return to market-based funding could also be a trigger for a positive rating action, as would faster-than-expected improvements in the banking sector’s health,” Moody’s said in its credit opinion.