Standard & Poor’s Ratings Services upgraded the debt rating for Greece on Friday to B from the previously held B-. The upgrade is due to progress in the nation’s fiscal reform efforts and its potential return to economic growth.

“The upgrade reflects our view that risks to fiscal consolidation in Greece have abated,” said the firm in a statement on Friday. “We expect recovering real and nominal GDP will enable Greece to operate average primary surpluses of 2 percent of GDP during 2014-2017.”.

S&P predicts that Greece will emerge from its seven-year recession next year and calls the country’s recovery “gradual but weak.”

The decision to lift Greece’s rating came after two medium-term Greek bonds met strong demand. Furthermore, the Finance Ministry said on Friday that the country has beaten its targeted primary budget surplus for the first eight months of 2014.

Further increases to Greece’s ratings could come if the country’s institutional framework strengthened.

Greek sovereign long-term debt is still considered “junk”, but the increase to a B takes it five notches into junk territory.