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.
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.