S&P raises sovereign credit rating of Greece

Rating agency Standard & Poor’s has raised Greece’s sovereign credit rating to B-minus with a stable outlook from selective default, citing Europe’s efforts to keep the country part of the euro.

“The upgrade reflects our view of the strong determination of European Economic and Monetary Union member states to preserve Greek membership in the euro zone,” S&P said.

“The outlook on the long-term rating is stable, balancing our view of the government’s commitment to a fiscal and structural adjustment against the economic and political challenges of doing so.”

SP had cut the rating to selective default this month after the Greek government invited private sector bondholders to participate in a debt buyback meant to help lower the country’s debt burden. SP said the consummation of the debt buyback would probably see the selective default cured.

Greece’s major lenders both endorsed the result of the bond buyback. The debt buyback helped convince euro zone partners and the IMF to unlock €49.1 billion in aid by the end of March. – (Reuters)