Moody’s ratings agency reports that the resignation of Greek PM Alexis Tsipras and the calling of snap elections are positive developments for the country’s 3rd bailout plan. The agency makes a ‘credit positive’ evaluation on Greece, estimating the latest developments will boost Greece’s credibility, as they would ‘provide the possibility of a more cohesive government, which could enhance the prospects of implementing the 3rd rescue plan reforms, thus reducing the liquidity and funding risks’.

‘We estimate Mr. Tsipras has called snap elections in order to seek a fresh mandate for the recent deal between Greece and its creditors. The resignation provides the prospects of the formation of a more stable government, either through the moderate SYRIZA, or through a coalition government with other Euro-friendly parties’, notes the agency.