Fitch maintains the Greek debt rating at “BB” with a stable outlook

EFE / Justin Lane / Archive . / Justin Lane / Archive

Athens, Jan 23 . .- The credit rating agency Fitch has decided to keep Greece’s long-term debt rating at “BB” with a stable outlook.
In a statement, Fitch noted that Greece’s rating reflects the high level of per capita income, which far exceeds the average for indebted countries with similar scores, as well as its governance performance, which is higher than most other countries. countries with that investment grade.
These strengths are offset by weak medium-term growth potential, an extremely high level of non-performing loans in the banking sector and very high levels of general government debt and net foreign debt.
The stable outlook reflects a degree of confidence in the sustainability of public finances, even after the strong impact on the economy and public finances of COVID-19, and risks to the economic outlook.
Fitch expects a real 10.2% drop in GDP for Greece in 2020, but a solid economic recovery over the next two years, provided that there is a significant recovery from the global health crisis following the implementation of vaccination programs.
A delay in vaccination campaigns, on the other hand, not only in Greece but among its trading partners, would slow down the recovery of the tourism sector, and a slow absorption of EU funds would slow down the growth of domestic demand, says Fitch.