Fitch Ratings has upgraded Greece’s credit rating to “BBB” from “BBB-”, placing the country one step higher within investment grade.

The upgrade rewards Greece for its strong fiscal discipline and the progress it has made in reducing public debt. Fitch also maintains a positive outlook for the Greek economy and signals a sustained shift in international sentiment.

The American rating agency’s decision concludes this year’s cycle of assessments by international houses on a highly positive note. Last May, Fitch had already upgraded Greece’s outlook to “positive,” keeping the “BBB-” rating at the time.

As reported by newmoney.gr, this latest upgrade pushes Greece further into investment-grade territory, leaving only Moody’s — the strictest of the major agencies — still rating Greece at the lower edge of investment grade.

According to Fitch, the country’s steady path of political and fiscal stability, prudent debt management, primary surpluses, and resilient growth has restored foreign investors’ confidence in Greek bonds.

Why Fitch upgraded Greece

Fitch highlights:

• Greece has achieved the largest debt reduction among investment-grade countries — a cumulative drop of more than 60 percentage points of GDP since 2020.
• Public debt fell to 145% of GDP in 2025, and is expected to decline further to 120% by 2030.
• The debt profile remains highly favorable, with an average maturity of 19 years, an average interest rate of 1.5%, and a sizeable cash buffer of about 18% of GDP, all of which help shield the country from external risks.

Greece’s fiscal performance is also exceptionally strong, with a primary surplus of 4.8% of GDP and a general government surplus around 1%, well above the BBB category average. Fitch attributes this success to effective tax administration, rising revenues, and disciplined spending. The targeted tax cuts planned for 2026 do not threaten fiscal stability thanks to a reliable and predictable framework, including the new national fiscal rule.

Growth, banking system, and current account

The Greek economy continues to grow near 2%, outpacing the eurozone — supported by robust domestic demand, investment, rising employment, and healthier household balance sheets. Fitch expects Greece to keep converging with the eurozone’s average income in the coming years.

The banking system now shows strong capital positions, solid organic profitability, and fully cleaned-up balance sheets regarding non-performing loans. Fitch notes that the sector has stabilized enough to justify a strong credit rating.

The only major vulnerability remains the current account deficit, standing at around 6% of GDP, but Fitch does not view it as an immediate risk given Greece’s eurozone membership and stable external capital flows.

Statements from Greek officials

Kyriakos Pierrakakis – Minister of National Economy & Finance

“Today’s upgrade by Fitch confirms what has become clear to everyone: Greece is moving to a new level.
As we proceed with the largest tax reduction of the post-1974 era, giving real relief to households and businesses, a leading international agency recognizes the strength of the Greek economy.
This proves that we can reduce taxes, support society, and at the same time strengthen Greece’s economic credibility.”

He added:

“This upgrade affects every citizen — it means lower borrowing costs for the state, more liquidity for businesses, easier access to financing, and greater certainty for investments that create new jobs.
Investor confidence grows, and more capital can now flow into Greek bonds and assets, improving overall financing conditions for our economy.
Greece is building a new position in Europe’s investment landscape.
We continue working for a stronger, more modern, and fairer Greece.”

Nikos Papathanasis – Deputy Minister of National Economy & Finance

“Fitch’s announcement, following the recovery of investment grade after fifteen years, is yet another vote of confidence in Greece.
It confirms internationally the credibility, consistency, and effectiveness of the government’s development-oriented economic policy, carried out with fiscal responsibility and a social orientation.”

He emphasized the positive prospects for:

• Growth well above the EU average
• Further strengthening of investment
• Continued reduction of public debt
• Additional tax cuts
• Improved competitiveness and expanded bank financing for businesses
• Creation of more new jobs

“In a climate of political stability and resilient macroeconomic indicators, we accelerate the reforms needed for Greece to achieve dual convergence with Europe — in income levels and balanced development across the country.
With the same consistency and realism, we will ensure that every euro of European and national resources benefits the economy and society.”