Fitch Ratings has improved the long-term rating of Greece from restricted default (RD) to B- with a sustainable forecast, Trend reports.
The short-term rating was improved from C to B, the country ceiling was confirmed at AAA, RIA Novosti reports.
The agency gave Greece B- for bonds published according to the PSI program. Investors restructure 96% of the bonds’ debt worth 177 billion euro. Fitch says that risks are still high.
Low bond rates should reduce deficit from 9.5% in 2011 to 4.5% by the end of the year. Further reduction of deficit will be assisted by the EU and IMF.
Greece needs to reduce the state debt from 170% of the GDP today to 120% by 2020. It will depend on financial reforms and economic growth. Results of the parliamentary polls in April and formation of a new Cabinet is unclear. Fulfillment of obligations with international creditors and realization of reforms will determine the rating.
