Citi: Multiple rating upgrades coming for Greece in 2020

Citigroup, in its report, focuses on this year’s ratings for the Eurozone countries by the four major rating agencies Fitch, Moody’s, S&P and DBRS. According to the report, Greece is expected to receive multiple upgrades.

Specifically, according to the report all rating agencies have already announced their review calendar. The report singles out Portugal and Greece as the two countries that will see the first upgrades early in the year.

For Greece, Citi stresses out that it expects multiple upgrades from the rating agencies in 2020. If the estimates are verified, Greece is expected to benefit in terms of liquidity from the inclusion of bonds in the investment grade indices as well as in the QE. All of this suggests that the Greek spreads are likely to decline sharply and severely.

Fitch is expected to announce its first rating for Greece on January 24th. S&P and DBRS will follow on April 24 and Moody’s on May 8. Fitch’s second scheduled evaluation for Greece is expected on July 24. S&P and DBRS will each announce their rating on October 23, and Moody’s is expected to make its second 2020 valuation announcement on November 6.

Currently, Standard & Poor’s, Fitch and DBRS maintain Greece three steps below the investment grade, while Moody’s scores Greece four points below the investment grade. The Greek government’s goal is to reach the crucial milestone for the country’s investment profile,  which was lost in 2010, by the first half of 2021. Many analysts see this as feasible, given the significant improvement in the country’s financial outlook.

Original Source: Capital.gr

Adaptation/Translation: Kiki Athanasiadis

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