DBRS raises Greece’s outlook to ‘Positive’

Morningstar DBRS raised on Friday night its outlook of the Greek economy from Stable to Positive, while affirming the country's credit rating as BBB (low), i.e. investment grade.

The Canada-based rating agency, that the European Central Bank also takes into account when considering a country's overall rating, said in a statement that the change in the outlook reflects its "expectations of further improvement in the banking system fundamentals. The banking sector is likely to continue maintaining good profitability, reducing nonperforming loans, and lowering deferred tax credits. Legacies related to a strong nexus with the government have also receded as a result of the government decision to sell a large amount of stakes in systemic banks." 

It added that "healthy and rising primary surpluses, in tandem with sound nominal growth, will facilitate further significant...