Moody’s Investors Service on Thursday reminded that Greece’s credit profile remains constrained by an elevated debt burden, while also pointing to only “moderate” growth prospects and a weak banking system.
In its annual report, Moody’s echoed widely circulated analyses citing the newly elected conservative government’s pledges for boosting investments and cutting tax rates, saying implementation of such a policy could, indeed, raise Greece’s growth prospects.
“Continued implementation of the reforms agreed with the euro area creditors, including a prudent fiscal stance, will be needed to maintain investor confidence in Greece”, Kathrin Muehlbronner, a Moody’s senior VP and the report’s author, said, adding: “While we expect the government’s debt burden to decline in the coming years, it will remain very high and Greece may need further debt relief in the medium term.”
