Late on Friday evening, Moody’s carried out an assessment of the credibility of the Greek economy, which upgraded the outlook from stable to positive, while maintaining the rating at Ba3.

The American rating agency cites the higher growth in nominal GDP, which it attributes to the improvement of governance as well as the reforms that have been made in both the economy and the banking sector.

The report estimates that together with the implementation of fiscal measures, higher nominal GDP growth will contribute to significant debt reduction in Greece in the coming years.

The confirmation of the ‘Ba3’ rating reflects a balance between the improvements seen in many areas of Greece’s credit profile with ongoing challenges.

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In particular, further reforms in the areas of justice, education, business environment and labor markets would support a higher rating.

In addition, the public debt burden remains very high and is supported by official creditors, with future improvements and a full return to market-based financing implying the maintenance of large primary surpluses for years to come.