DBRS raises Greek credit rating to B

Canada’s Dominion Bond Rating Service (DBRS) announced on Friday it had upgraded Greece’s credit rating from CCC to B and the country’s outlook from negative to stable, reflecting the assessment that the risks of a Greek exit from the eurozone and a new round of debt restructuring have declined.

The progress Greece has shown in meeting the targets of the adjustment program shows that its international creditors will likely continue to lend their support, argued DBRS.

The Toronto-based firm, one of only four credit rating agencies used by the European Central Bank to determine collateral requirements for borrowing, added that the reduction of Greek banks’ dependence on ECB liquidity, the improvement in the banking system’s “capital cushions” and the stabilization of deposits point to an improvement in credit conditions.