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    Moody’s Upgrades Greek Long-Term Rating From Caa2 to Caa3

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    Greece's long-term issuer rating was upgraded by US ratings agency Moody's to Caa2 from Caa3.

    MOSCOW (Sputnik) — Moody's has upgraded Greece's long-term issuer rating and changed the outlook to positive from stable, according to its Friday statement.

    "Moody's Investors Service ("Moody's") has today upgraded Greece's long-term issuer rating as well as all senior unsecured bond and programme ratings to Caa2 and (P)Caa2 from Caa3 and (P)Caa3, respectively," the statement read.

    The outlook for long-term bonds issued by the Greek government has been upgraded amid tentative signs that the nation’s economy has stabilized after a three-year decline, Moody’s Investors Service announced in a press release.

    "While it is too early to conclude that economic growth will be sustained, Moody's expects to see growth this year and next, after three years of stagnation and a cumulative loss in output of more than 27 percent since the onset of Greece's crisis," the release added.

    The release cited a number of positive developments in upgrading the nation’s debt outlook from stable to positive, including the forthcoming release of a $9.5 billion tranche of aid from the European Union.

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    The release also noted that Greece government posted a budget surplus of 4 percent of GDP in 2016, well above the target of 0.5 percent of GDP.

    In addition, euro creditors have committed to further extend Greece's debt repayment terms, if necessary, beyond August 2018, when the EU-sponsored economic recovery program ends, the release explained.

    On Monday, Moody’s Investors Service said that the outlook for the Greek banking system for the next 12-18 months remains stable on the expectation of better profitability and a high level of problem loans.

    Moody’s said Greece’s real GDP should grow 1.5 percent in 2017 and 2 percent in 2018, an improvement from the zero percent growth in 2016.

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    Issuer Default Ratings, Moody's, Greece
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