S&P raises Greece’s credit rating

Rating agency Standard and Poor’s ratcheted the credit rating on the troubled eurozone nation’s government debt up six notches from ‘standard default’ to ‘B minus’ following the successful completion on Monday of its bond buyback programme – one grade higher than expected.

The agency lowered Greece’s credit rating from CCC to ‘selective default’ after Athens invited bondholders to participate in a series of debt buyback auctions on December 3, saying it expected to restore the rating on completion of the programme.

S&P said in its statement: “The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone.

“The outlook on the long-term rating is stable, balancing our view of the government’s commitment to a fiscal and structural adjustment against the economic and political challenges of doing so.”