Fitch affirms Greece at 'B' outlook stable
Fitch Ratings on Friday affirmed Greece's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B'. The issue ratings on Greece's senior unsecured foreign and local currency bonds are also affirmed at 'B', while the outlooks on the long-term IDRs are stable.
According to Fitch, the general government budget is on track to meet its 2014 objective underscoring a “remarkable budgetary adjustment” and forecasts GDP growth of 0.5 pct in 2014, rising to 2.5 pct in 2015.
It also forecasts that the primary surplus will be at 1.5 pct of GDP this year.
Fitch expects the current troika review to be concluded by the end of 2014, but there is some risk it may slip into early 2015.
An early general election in the first quarter of 2015 is a likely scenario and there is a risk that the next administration would be less supportive of economic and fiscal reform, Fitch noted.
According to Fitch, the most painful phase of Greece's adjustment is over and its funding needs are covered through the second quarter of 2015 without market or troika funds.
However, it underlines that achieving and maintaining the medium term primary surplus target of 4 pct relies on continued tight fiscal discipline and a sustained recovery in growth.
Δημοφιλείς Ειδήσεις
