After 13 years in the ‘junk’ category, Greece is ready to regain investment grade status. But the question that dominated FinForum 2023, which is being held in Athens, under the auspices of the Hellenic Bank Association, was how soon can we expect this “gift” from the rating agencies.
Samuel Tilleray, Sovereign Ratings Analyst, S&P, stated that after the elections, the chances for the positive scenario have increased, adding, however, that there is a new government, a new cabinet, a new finance minister, bringing some kind of uncertainty.
He explained that Greece is close to achieving investment grade status, but it is not there yet.
The analyst underlined that S&P is trying to review the rating every 12 months. For Greece, this clock has started ticking since April. October 20 is on the agenda. Before that announcement, S&P will have to see if it has enough information to change the rating, Tilleray stated. He clarified, however, that provided that there is not enough information until then, they will have to wait. “We will not rush to make a decision. We treat Greece like any other country and we want to be sure that we will make the right decision”.
Regarding domestic banks, Goksenin Karagoz, Banking Analyst, S&P, noted that a placement by large investment funds in their equity composition will contribute to their further upgrading. He also noted that the improvement of the Greek economy contributes to the development of the banks, which have recovered from the recent crisis, significantly improving their profitability. But we still have a way to go, he noted.