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Greece credit rating upgraded at Moody's, outlook revised to stable - Tomi Kilgore

Greece's sovereign bond rating was upgraded one notch to Caa2 from Caa3 at Moody's Investors Service, citing the release of a EUR8.5 billion tranche under the country's adjustment program allowing the repayment of debt, improved fiscal prospects and tentative signs of a stabilizing economy.

The outlook was revised to positive, which implies another upgrade is likely, from stable.

The sovereign bond rating isstill 8 notches below investment grade. The short-term debt rating was
affirmed at not prime.

"Beyond the near-term impact of allowing Greece to repay upcoming maturities, we consider the conclusion of the review to be a positive signal regarding the future path of the program, as it required the Greek government to legislate a number of important
reform measures,"

Moody's said in a research note. "The decision to assign a positive outlook to the Caa2 rating reflects Moody's view that the prospects for a successful conclusion of Greece's third adjustment program have improved, which in turn raises the likelihood of further debt relief."

For additional information go to Market watch

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